This is another move from China to start a new infrastructure where countries can trade away from the still mighty USA Dollar and in my view seems to me that China is really devoting a lot of time, effort and resources to make its own CBDC get accepted not just by its own people but other countries as well. I am not a big fan of CBDC all because it can be a big tool for the government to control the financial lives of the people and can further the interest of "rouge" politicians in power to spreading their agenda.
In fact, I did not understand the basic goal behind this agreement. I mean that when all countries conclude agreements, there are common political and economic goals, but I do not see here what Kazakhstan can offer to China?I believe the goal of the agreement is to allow both countries to engage in international trade using their cbdc's. China is closer to launching their cbdc than Kazakhstan, but both countries will have cbdc's in the future and they want to explore its use for cross-border trade. I don't know how successful this can or will be, but we will see how it develops.
According to the source, the agreements are related to the exchange of knowledge and experience, the conduct of joint research on the digital currencies of central banks, and the development of its efficiency of employees, which means that it is an attempt by Kazakhstan to learn more about CBDC and mostly such agreements end with visiting some officials or sending some employees.In fact, I did not understand the basic goal behind this agreement. I mean that when all countries conclude agreements, there are common political and economic goals, but I do not see here what Kazakhstan can offer to China?I believe the goal of the agreement is to allow both countries to engage in international trade using their cbdc's. China is closer to launching their cbdc than Kazakhstan, but both countries will have cbdc's in the future and they want to explore its use for cross-border trade. I don't know how successful this can or will be, but we will see how it develops.
The memorandum outlines a framework for both institutions to exchange insights and experiences in CBDC research. The National Bank of Kazakhstan detailed:
The parties agreed to share knowledge and expertise, carry out joint CBDC research, and develop employee competencies through joint training.
Yes, I also think that what is most correct is that this agreement is about exchanging knowledge and experiences, and conducting joint research on central bank digital currencies, and most likely, China will teach Kazakhstan more about central bank digital currencies (CBDC).According to the source, the agreements are related to the exchange of knowledge and experience, the conduct of joint research on the digital currencies of central banks, and the development of its efficiency of employees, which means that it is an attempt by Kazakhstan to learn more about CBDC and mostly such agreements end with visiting some officials or sending some employees.In fact, I did not understand the basic goal behind this agreement. I mean that when all countries conclude agreements, there are common political and economic goals, but I do not see here what Kazakhstan can offer to China?I believe the goal of the agreement is to allow both countries to engage in international trade using their cbdc's. China is closer to launching their cbdc than Kazakhstan, but both countries will have cbdc's in the future and they want to explore its use for cross-border trade. I don't know how successful this can or will be, but we will see how it develops.
China is closer to launching their cbdc than Kazakhstan, but both countries will have cbdc's in the future and they want to explore its use for cross-border trade. I don't know how successful this can or will be, but we will see how it develops.Even if Kazakhstan do not want that, China will prefer it. China always prefer to move closers to anything that can cause dedollarization. As for China launching CBDC, the country has began Digital Renminbi or digital yaun piloting since 2019/2020. With what I have read about it in the past, I will say China has CBDC already.
In 2019, China began piloting its central bank digital currency, known as the e-CNY. After a slow start, uptake has accelerated rapidly, with 26 cities serving as test beds and 5.6 million merchants registered to use the currency nationwide as of last year. Its implementation has gone into overdrive in 2023. Former People’s Bank of China (PBOC) governor Yi Gang said in July that total transactions had reached 950 million with a cumulative value of 1.8 trillion yuan (US$249.9 billion) by the end of June, up from 100 billion yuan (US$13.9 billion) the previous August. With 120 million wallets opened and its potential utility in expanding the overseas adoption of Chinese currency, countering the risk of Western sanctions and chipping away at US dollar dominance, the digital yuan is poised to see even greater promotion in the years to come.
As for what @Z-tight mentioned that "the goal of the agreement is to agreement is to allow both countries to engage in international trade using their cbdc's", I rule that out because China most likely will not accept the use of a CBDC other than the digital yuan in international trade. Also, there is not yet a universally accepted CBDC in international trade.It is part of the deal China struck with Kazakhstan, read this article first:
It is part of the deal China struck with Kazakhstan, read this article first:Thank you for sharing the link. Yes, I understand that China is always looking for any alternative that can remove the dollar’s dominance, but frankly, I am not sure if this plan will succeed. I mean, CBDC has not yet been tested in international relations.
https://coingeek.com/china-strikes-deal-with-kazakhstan-on-cross-border-cbdc/
They have a deal that has to do with both countries using their cbdc's for bilateral trade, it is something they want to explore, i don't know if it will be successful, but we will see. I know they also have other agreements, but this one is part of it as evidenced in the article i just shared.
In fact, I did not understand the basic goal behind this agreement.
but I do not see here what Kazakhstan can offer to China?
It is part of the deal China struck with Kazakhstan, read this article first:Thank you for sharing the link. Yes, I understand that China is always looking for any alternative that can remove the dollar’s dominance, but frankly, I am not sure if this plan will succeed. I mean, CBDC has not yet been tested in international relations.
https://coingeek.com/china-strikes-deal-with-kazakhstan-on-cross-border-cbdc/ (https://coingeek.com/china-strikes-deal-with-kazakhstan-on-cross-border-cbdc/)
They have a deal that has to do with both countries using their cbdc's for bilateral trade, it is something they want to explore, i don't know if it will be successful, but we will see. I know they also have other agreements, but this one is part of it as evidenced in the article i just shared.
Thank you for sharing the link. Yes, I understand that China is always looking for any alternative that can remove the dollar’s dominance, but frankly, I am not sure if this plan will succeed. I mean, CBDC has not yet been tested in international relations.True, that is why it is a Memorandum of undrstanding (MOU) for now, it is what they both wish to explore in the future to better their economy. According to the article i shared earlier, trading volume between China and Kazakhstan has been on the rise in the last decade, rising to as high as $41B in 2023, and some of the main export products from Kazakhstan to China includes: crude petroleum, refined copper and copper ore.
They would no reason to trade cross border using cbdc crap if they dont already plan to force the same thing to people, or they could trick the people in using it because it's ''safe and effective'' :PCbdc's aid the government in their anti-privacy stance. Some months ago the house of reps in the U.S passed a bill to stop the Feds from printing cbdc's, because it is totally a pro-surveillance kind of money, i still believe cbdc will be launched in the U.S though.
They would no reason to trade cross border using cbdc crap if they dont already plan to force the same thing to people, or they could trick the people in using it because it's ''safe and effective'' :PCbdc's aid the government in their anti-privacy stance. Some months ago the house of reps in the U.S passed a bill to stop the Feds from printing cbdc's, because it is totally a pro-surveillance kind of money, i still believe cbdc will be launched in the U.S though.
As for China, they will do anything to promote their cbdc and that is why they are proposing this cross-border trading in cbdc, with Kazakhstan.
Perhaps the Kazakhs might think that this is good for them, to have China behind their back. But who knows, for me Chinese shouldn't be trusted specially if it is has something to do with the economics of your country.This has nothing to do with 'slavery', or anything like that. China and Kazakhstan have been partners in bilateral/international trade for a very long time now, with their trading volume rising to as high as $41b in 2023. I don't exactly know what the true motive is behind the proposal to use cbdc in settling some of these trades, but take note that their partnership didn't start 'today'.
They would no reason to trade cross border using cbdc crap if they dont already plan to force the same thing to people, or they could trick the people in using it because it's ''safe and effective'' :PI am sorry to say but people in China already bought all that crap about safety, without thinking much about the consequences.