Kazakhstan and China to integrate QR payments and test digital currency settlements
The National Bank of Kazakhstan and the Agency for Regulation and Development of the Financial Market (ARDFM) agreed with the People’s Bank of China on a series of joint infrastructure projects. By the end of the year, the regulators plan to integrate QR payment systems and launch pilot cross-border settlements in national digital currencies.
According to the National Bank, the Kazakh delegation held meetings in Beijing with the leadership of China’s financial regulator, major banks, and the operator of the Chinese Cross-Border Interbank Payment System (CIPS). The parties signed a new three-year currency swap agreement and approved a plan to expand settlements in national currencies.
The main technological outcome of the visit was an agreement to directly link payment instruments. The rollout of cross-border QR payments is scheduled before the end of this year. Finteqstan previously reported how a unified QR in Kazakhstan exposed the banks' tariff battle for business; now this infrastructure is going international. In addition, the countries will test settlements using the digital tenge and digital yuan.
During the visit, an agreement was also reached to sign a memorandum between the Association of Financiers of Kazakhstan and the China Banking Association. The professional associations will exchange practices in banking regulation, investment attraction, and personnel training for the financial sector.
Why it matters
Trade turnover between Kazakhstan and China requires a seamless payment infrastructure independent of international card systems and long correspondent banking chains.
Directly linking national digital currencies and QR systems allows businesses and tourists to reduce transaction costs and speed up payments.
What’s next
By the end of the year, the market will see the technical implementation of the QR code integration: which Kazakh banks will be the first to offer clients the ability to pay in China and under what conversion terms. In parallel, regulators must define the framework for the central bank digital currency (CBDC) pilot.
