After a month-long pilot project, the digital currency of the National Bank of Kazakhstan, known as the digital tenge or #CBDC, has been deemed successful. The project has paved the way for numerous improvements in the fields of business, regulation, and technology, which are planned for implementation in 2024.
During the pilot project, the digital tenge was utilized to provide free meals to schoolchildren in Almaty through the use of the local Onay card, originally designed for transportation purposes. In these transactions, the Kazpost postal service acted as an intermediary.
Great follow-up meeting with @Mastercard SVPs Selim Ergoz&Arn Vogels, building upon #UNGA78 agreements. Encouraged by the efforts in the continuous DCP implementation-opening a regional hub in Almaty, bolstering the digital #tenge, offering SME training and other 5 priority areas pic.twitter.com/cpviSwL7DM
— Yerzhan Ashikbayev (@KZAmbUS) November 28, 2023
Plastic cards were issued to participants of the focus group by four local banks in collaboration with #Visa and #Mastercard. These cards allowed users to make purchases in-person or online, as well as withdraw cash from ATMs. Participating merchants had the option to accept digital tenge or convert them into "non-cash" tenge.
By converting the digital tenge, they were integrated into existing point-of-sale systems and QR systems. The cards were valid throughout #Kazakhstan and beyond. The report states that this level of interaction is innovative for a national bank's digital currency.
Other experiments with the digital tenge included international transfers, payment for government services, and participation in public auctions. All of these projects were successfully implemented, leading the National Bank of Kazakhstan to conclude that the digital tenge holds positive prospects for usage.
Based on the results of the pilot project, a series of improvements and enhancements are planned for the business sector. Specifically, the project aims to expand the list of participants, including banks, electronic payment systems, and other financial organizations. Additionally, efforts will be made to enhance the technical infrastructure and improve security measures.
Furthermore, the role of the National Bank in regulating the digital currency will be strengthened. New legislative acts will be developed to establish rules and norms for the usage of the digital tenge. A dedicated division within the National Bank will also be created to oversee and monitor the digital currency.
Overall, the digital tenge is considered a successful project that can bring significant benefits to the economy and business sector of Kazakhstan. Its implementation will improve the efficiency of financial operations, enhance security measures, and simplify interactions among market participants. Additionally, the digital tenge can contribute to the development of financial inclusivity, providing financial services to populations that previously lacked access to such opportunities.
It is expected that in the coming years, the digital tenge will continue to evolve and be utilized in various sectors of the economy. This can serve as an important factor in attracting investments and stimulating economic growth in Kazakhstan.
In conclusion, the implementation of the digital tenge in Kazakhstan represents a crucial step in the development of the digital economy and the strengthening of the National Bank's role in the country's financial system. This will position Kazakhstan at the forefront of global trends in the digitization of financial services and create a favorable environment for business development and innovation.
