China and Kazakhstan Sign CBDC Collaboration Agreement

[sirty143]

China and Kazakhstan Sign CBDC Collaboration Agreement

The People’s Bank of China and the National Bank of Kazakhstan have signed an agreement to collaborate on central bank digital currencies (CBDCs). This collaboration agreement, formalized during President Xi Jinping’s visit to Kazakhstan... See more for yourself here.

Your opinion is greatly appreciated.

[TomPluz]

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.

[Kemarit]

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.

That might be one of the reasons, but the countries that they've sign collaboration though is not that big. It they sign with other powerhouse country then it might be a good sign for them. And so it will take at least a decade or even more if they can really challenge the might USD in terms of acceptance. And we all know that the economics in the US is improving and see it's balance in the financial arena could still be huge and influence other countries to still used their USD as the mode of payment and not the digital Yuan or whatever CBDC's that we have right now.

[yhiaali3]

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 expect that the political goals will be greater behind this agreement, as China seeks to include the countries next to it and distance them from the American alliance. Perhaps China wants to transfer its experience with the digital yuan to Kazakhstan to create its own digital currency, which is much worse and more tightly controlled than the Fiat.

[Z-tight]

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.

[hugeblack]

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.

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.

[yhiaali3]

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.

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).

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.

[Charles-Tim]

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.

[Z-tight]

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:
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.

[yhiaali3]

It is part of the deal China struck with Kazakhstan, read this article first:
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.

It is possible that CBDC for China or Kazakhstan will succeed in the national sphere within the borders of the country itself, but its use in international trade is a new matter that they need to test first and it is certain that they will face major obstacles and I am not sure whether it will succeed or not.

[target]

Just for digital yuan adoption in the international trade. I have no idea whag Kazakstan products they import and export but they are neighbors which they absolutely going to be a trade partners for life.

China has a lot of things to offer to any country. If they can build infrastructures on far away.countries, they should be able to also develop on their neighbors.

[Stompix]

Nothingburger!

In fact, I did not understand the basic goal behind this agreement.

It's cooperation in developing something, not that they will come with a product both will use it, of course Chian would want to but not way it's going to happen. Countries collaborate on a lot of things, sometimes even if they are considered as economic rivals, there are hundreds of researches done in cooperation even by China and Japan for example!

but I do not see here what Kazakhstan can offer to China?

For this thing, nothing, in general, the gateway to Europe and the middle east now that Russia is no longer the solution!

[hugeblack]

It is part of the deal China struck with Kazakhstan, read this article first:
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.

I do not think that China's goal is to increase the percentage of the yuan in global reserves, so that if sanctions were imposed on China, it would have some alternatives to circumvent the sanctions.
Over time, the US sanctions will become less effective, and here the countries will have exchange agreements to complete trade deals between them and purchase oil, which is what China and Russia are trying to achieve.


Removing the dominance of the dollar as the global reserve currency requires extreme variables, such as war, for example.

[Z-tight]

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.

So the two countries are actively involved in bilateral trade, and now they want to explore another financial instrument in the settlement of these trades.

[dkbit98]

This is collaboration of two countries how to best enslave their people, and China is already way ahead of everyone else with this stupidity.
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''