Kazakhstan Central Bank to use Binance Smart Chain to integrate Central Bank Digital Currency

Binance Smart Chain is one of fastest chains out there, making it ideal for CBDCs – central bank digital currencies. Kazakstan Central Bank has announced that its CBDC will be integrated on the Binance Smart Chain.

Kazakhstan Central Bank binance smart chain

That does not mean it will run solely on BSC. All CBDCs will be multichain in the end, which means they could run on multiple blockchains, which can be either private or public. Central banks and governments are flocking to fast blockchains to run their central bank digital currencies as you would not want a slow chain like bitcoin to confirm your transactions that can take between 10-30 minutes for first confirmation.

At the same time, you would want transaction fees to be as expensive as Ethereum blockchain, that reached more than $100 during the 2021 bullrun.

Keep in mind that Binance and Binance Smart Chain are two separate entities. While Binance is playing major part in development of Binance Smart Chain, what happens on the chain is in no control of Binance. Binance is a centralized exchange while Binance Smart Chain is decentralized in nature. Both have their own advantages and disadvantages.