- Although recently hacked, the Binance Chain ecosystem is one of the top go-to infrastructures for developers seeking to build decentralized applications.
- Binance is only second to Ethereum in TVL, with approximately $5.56 billion and 490 decentralized protocols.
The government of Kazakhstan, through the country’s central bank, has tapped the Binance Chain to scale its CBDC program. According to an announcement by Binance CEO CZ, Kazakhstan will test the digital Tenge, which is currently on a controlled pilot program, on the Binance Chain. The partnership is expected to exponentially give BNB token major real-world utility, which could have profound implications on its price in the near future.
Moreover, BNB’s price is trading around $288, up approximately 6.5 percent in the past week.
National Bank of Kazakhstan (NKB) will integrate their CBDC on @BNBchain. #BNB https://t.co/33WMKwAczm
— CZ 🔶 Binance (@cz_binance) October 27, 2022
Having delivered good news to the Binance community, crypto market strategists are now looking into Stellar Lumen’s penetration into the CBDC sector.
The Stellar Lumens ecosystem was built with CBDC in mind. However, stiff competition has reduced its market share, although it has increased the general health of the ecosystem.
“Stellar is uniquely suited to CBDCs precisely because it capitalizes on the trust inherent in asset issuers,” the company’s whitepaper reads.
Binance continues to build through the crypto bear market
Although recently hacked, the Binance Chain ecosystem is one of the top go-to infrastructures for developers seeking to build decentralized applications. According to metrics provided by DefiLlama, Binance is second after Ethereum in TVL, with approximately $5.56 billion and 490 decentralized protocols.
Among the top protocols built on top of the Binance Chain include PancakeSwap and Venus. Notably, the former is a decentralized exchange (DEX) that helps Binance traders in yield farming and seamless swap between protocol tokens like BEP20 to BEP2.
Competition in layer 1 blockchains is getting fierce as developers build sophisticated yet approachable decentralized applications. Ethereum’s key developer Vitalik Buterin argued that major L1 blockchains should be recognized as states. Furthermore, they have an ecosystem of active community members willing to have a bilateral relationship with internationally recognized states.
The Binance cryptocurrency exchange, besides being the leading crypto platform by daily traded volume, is one of the most heavily regulated digital assets providers globally. Notably, the cryptocurrency platform has received regulatory approvals in different jurisdictions across various continents.
Countries worldwide are working with key public blockchains to issue their CBDC. Security and interoperability have emerged as the top concerns for most global central banks seeking to issue digital currencies.
Furthermore, it would be a bad picture if a country’s digital currency is hijacked and coins printed and liquidated via crypto mixers. As such, central banks have teamed up to develop various cross-border payment infrastructures. Reportedly, there are nine cross-border wholesale (bank-to-bank) CBDC tests, and three cross-border retail projects, according to metrics provided by atlanticcouncil.org.
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