China-Kazakhstan Strategic Partnership on CBDC Research
China and Kazakhstan have formed a strategic partnership to collaborate on Central Bank Digital Currency (CBDC) research, focusing on knowledge sharing, expertise enhancement, and employee competency development through joint training and research projects. This initiative by the People’s Bank of China (PBoC) and the National Bank of Kazakhstan (NBK) aims to leverage their expertise and knowledge in CBDC development and implementation, conduct joint research, and enhance employee skills in CBDC research and development. The partnership could lead to faster, more secure, and cost-effective cross-border transactions, benefiting international trade and economic integration. The co-development of CBDCs by China and Kazakhstan has the potential to boost economic efficiency, reduce transaction costs, and enhance financial inclusion in both countries.
The Global Race for Central Bank Digital Currencies
Countries worldwide are ramping up efforts to adopt CBDCs to improve financial inclusion, payment efficiency, and reduce reliance on the U.S. dollar. Amidst competition from popular digital payment platforms like Paytm and Google Pay, central banks are advancing their CBDC initiatives. The Reserve Bank of India is piloting wholesale and retail CBDCs, while Indonesia has launched Project Garuda for a digital e-rupiah. Thailand, the Bahamas, and the Eastern Caribbean Central Bank have also made strides in the adoption of CBDCs. In Europe, Sweden and the U.K are exploring CBDC launches, with the EU investigating the feasibility of a digital euro. Each country’s CBDC efforts aim to enhance financial inclusion, support cross-border payments, and foster digital innovation in the financial sector.
