Kazakhstan Launches 'Digital Tenge', Executes First CBDC Transaction: Extensive Expansion Planned for 2024
Summary:
Binur Zhalenov, Chairman of Kazakhstan’s National Payment Corporation, completes the first transaction with the central bank digital currency (CBDC) or "digital tenge". The digital tenge was officially launched in Kazakhstan’s retail market, with extensive platform expansion planned for 2024. The digital currency, developed together with Visa, Mastercard, and local banks, can be used for global transactions through Apple Pay, Samsung Pay, and other similar services. The future development of CBDC will focus on offline payments and is expected to be utilized in cross-border trade by 2025. Meanwhile, Kazakh authorities are increasing regulation on the crypto market.
In a notable move, Binur Zhalenov, the head of Kazakhstan's National Payment Corporation (NPC), successfully completed the first-ever transaction using the central bank's digital currency (CBDC). He demonstrated this during the XI Congress of Finance in Almaty on November 15 by making a payment from a debit card linked to the CBDC account, as reported by local media outlet Kapital.kz. Zhalenov made the official announcement about the launch of "digital tenge" in Kazakhstan's retail market, with an assertive plan for extensive growth by 2024. He underscored the efforts made in conjunction with Visa, Mastercard, and local banking institutions to integrate the digital currency into plastic cards, thereby facilitating global transactions using digital tenge via Apple Pay, Samsung Pay, and similar technologies.
Furthermore, Zhalenov brought to light the programmable possibilities of the digital tenge, proposing its usage in smart contracts, unique financial services, and digital asset exchanges. He pointed out that the CBDC's evolution in the upcoming year will prioritize offline transactions, and by 2025, the NPC plans to introduce cross-border trade using the digital tenge.
The NPC - established as recently as September - took the lead in developing and introducing the CBDC, which started its journey towards full-fledged application in February 2023 and was initially set for a 2025 launch. Alongside the rapid CBDC developments, the Kazakhstan authorities have increased their vigilance over the cryptocurrency market. Major international exchanges such as Coinbase and Kraken fell under scrutiny in September for operating without a local license. Furthermore, in October, local crypto mining companies penned an open letter to the Republic's president, Kassym-Jomart Tokayev, urging a reduction in the recently hiked tax rates applicable to their operations.
Published At
11/15/2023 11:28:08 AM
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