Binur Zhalenov, the chairman of Kazakhastan’s National Payment Corporation (NPC), has conducted a landmark transaction where he used a debit card linked with a CBDC account for payment. This transaction marks the country’s initiative toward the adoption of digital currency as the inaugural transaction with the newly launched Central Bank Digital Currency (CBDC) was completed. The newly launched CBDC is called Digital Tenge, whose pilot program was started in 2021 by the National Bank of the Republic of Kazakhstan. The program was launched in cooperation with the financial market participants and international partners.
Central Bank Digital Currencies, or CBDCs, are digital forms of a country’s official currency issued and regulated by its central bank. CBDCs differ from traditional physical cash as they exist in digital format and are typically built on centralized systems. The central monetary authority of the country manages these systems.
Zhalenov has stated that the country has plans to develop this platform further in 2024. The development of the digital tenge involved collaboration with global payment giants Visa and Mastercard, along with local banks, enabling integration with plastic cards.
Zhalenov highlighted the convenience of making digital tenge payments globally through popular platforms like Apple Pay and Samsung Pay. Furthermore, he underscored the programmable capabilities of the digital tenge, envisioning its use in smart contracts, innovative financial services, and digital asset transactions.
Looking ahead, the government’s CBDC development roadmap includes a focus on offline payments in 2024, with the expectation of adopting the digital tenge in cross-border trade by 2025.
As the CBDC rollout gained momentum, Kazakh authorities increased scrutiny over the cryptocurrency market. In September, reports surfaced of difficulties accessing major international crypto exchanges like Coinbase and Kraken without a local license. In response, local crypto mining operators penned an open letter to President Kassym-Jomart Tokayev in October, urging a reconsideration of newly introduced tax rates on mining activities.
