National Bank of Kazakhstan Publishes White Paper on Digital Tenge

The National Bank of Kazakhstan (NBK) successfully completed the second phase of testing the digital tenge platform. Following its results, a white paper was published, explaining the need to implement CBDC.

Real users and merchants participated in testing the digital tenge. As of October 2022, more than 3,500 token transactions had been completed. Users sent funds via a dedicated application.

“The introduction of the digital tenge will increase the accessibility of financial services by enabling offline transactions, will open up new opportunities for creating innovative financial products, will improve the efficiency of government spending, and will also reduce costs in cross-border settlements,” the regulator’s report says.

According to the survey, more than 60% of Kazakhstan’s residents are willing to use the digital currency.

An economic study of CBDC implementation showed no risks to monetary policy, financial stability, and the economy of Kazakhstan as a whole.

It is expected that the digital tenge will enter normal operation by the end of 2023.

In 2020, the NBK began studying the possibility of implementing CBDC. In December 2021, the regulator reported the first results of the pilot project for the digital tenge.

In October, the National Bank of Kazakhstan announced plans to test the BNB Chain from Binance for the deployment of the national digital currency.

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