🏦 Kazakhstan launches card to pay with cryptocurrencies: what does it mean?

The National Bank of Kazakhstan has begun a trial with a new type of card that allows people to pay with bitcoin $BTC and other cryptocurrencies in stores or services, just as they would with a regular debit or credit card. This project is one of the first in the world launched by a government.

How does it work?

💰The card is linked to the user's digital wallet, where they hold their cryptocurrencies. But payments are not made directly with the cryptos. Here's what happens:

The user makes a payment with the card.

At the moment of payment, the system automatically sells the necessary amount of cryptocurrencies.

The money obtained from that sale is converted into the local currency of Kazakhstan.

That amount in local currency is loaded onto the card and the payment to the merchant is completed.

This process occurs in seconds, and the buyer does not have to do anything extra.

Where can it be used?

This system only works if the user uses cryptocurrency platforms authorized by a special economic zone in Kazakhstan called the Astana International Financial Centre (AIFC). It is a place where new ideas for the country's financial system are tested.

Why is it important?

This project seeks to bridge the world of cryptocurrencies with the traditional banking system, in a safe and regulated manner. It is also part of a larger government plan in Kazakhstan to promote financial innovation, especially in the area of digital assets and tokenization (converting things into a digital format with value, such as properties or shares).

The news was announced in Almaty, the largest city in the country, during a meeting between the central bank, fintech companies, and cryptocurrency platforms.