Nano Labs secures Kyrgyz approval to launch CNH-pegged stablecoin, boosting cross-border digital payments between Kyrgyzstan and China.
Nano Labs Ltd, a China-based Web 3.0 infrastructure company, is taking a major step toward expanding digital finance in Central Asia. The company recently received official approval from the Kyrgyz Republic to launch a CNH-pegged stablecoin. This stablecoin will be pegged with the offshore Chinese yuan (CNH), and it will be used to facilitate cross-border payments between Kyrgyzstan and China.
Kyrgyzstan Backs Stablecoin Plan to Ease Trade with China
Two of the key authorities in Kyrgyzstan, the National Investment Agency and the National Council on the Development of Virtual Assets and Blockchain Technologies, authorized by the office of the President, gave the green light. As per an official statement by these institutions, the top management of the Presidential Administration has gone through the proposal by Nano Labs and has approved the proposal to be undertaken.
The project is a strategic initiative to enhance trade, investment, and monetary transparency between China and Kyrgyzstan. A digital stablecoin will help to simplify transactions and decrease the dependency on the traditional banking systems as trade between the two countries increases. Moreover, it allows businesses to evade delays and conversion costs on currency, especially when transferring funds across borders.
Nano Labs will provide technical documentation and a white paper outlining its technology in detail to satisfy government requirements. These will be documents detailing the structure of the stablecoin, security, and operational structure. In the meantime, the company will collaborate further with local stakeholders to ascertain that the project is in line with the Kyrgyz regulations.
At the same time, Nano Labs has decided to cancel its earlier plans to apply for a similar stablecoin project in Hong Kong. Initially, in the Special Administrative Region, the firm had thought to introduce a stablecoin that was pegged either to the Hong Kong dollar (HKD) or the CNH. But it has now officially abandoned that concept and will target the countries in China’s Belt and Road Initiative.
Nano Labs Eyes Central Asia for Stablecoin Expansion
The shift in strategy is also an indicator of a wider change in the region. Although Hong Kong is a major financial hub, the landscape regarding stablecoins is unclear. As opposed to this, the Kyrgyz Republic has been keen on hosting blockchain innovation and enhancing its digital economy. Nano Labs interprets this as a definite indication of focusing on more receptive countries in terms of crypto-related projects.
Nano Labs has established a name in the digital economy of China. It is a company that deals with high-throughput and high-performance computing chips, which are critical to blockchain and artificial intelligence. It also provides Web 3.0 services and assists companies to get into the next level of the internet. Interestingly, the company keeps reserves in the biggest digital currencies, such as Bitcoin (BTC) and Binance Coin (BNB), and BNB is the primary reserve asset of the company.
Related Reading: Kyrgyzstan Signs Crypto MoU with Binance Founder CZ
In the future, Nano Labs is hoping that this will be just the first stablecoin project in Central Asia. The company aims to establish the model of cross-border digital payments in the developing world by establishing good relations with Kyrgyz partners and regulators. In case of success, the project would be able to make other countries in the Belt and Road begin to use similar financial instruments, forming a new digital trade and cooperation ecosystem.
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