China, Kazakhstan partner on cross-border CBDC [Video]

China’s attempt to float a central bank digital currency (CBDC) has seen it sign a handful of Memorandum of Understanding (MoU) with several nations, with Kazakhstan being the most recent addition to the list.

Under the deal, China and Kazakhstan will jointly explore the concept of CBDCs, including retail and wholesale iterations, to improve their financial ecosystems. The historic partnership comes after Chinese President Xi Jinping visited Kazakhstan in early July, with cross-border transactions forming the crux of high-level discussions.

The agreement is expected to be the precursor for both nations to use their homegrown CBDCs for bilateral trade settlements rather than a dependency on the dollar. Trade volumes between China and Kazakhstan have been on the rise since the start of the decade, famously reaching a new all-time high of $41 billion in 2023.

To promote the use of their local currencies while reaping the myriad benefits of digitization, China and Kazakhstan are throwing their weight behind …