The National Bank of Kazakhstan has successfully completed a month-long trial, showcasing the versatility of the digital tenge across various applications, from facilitating free lunches for schoolchildren in Almaty to the tokenization of gold.
This innovative currency has been integrated seamlessly into the daily lives of citizens, thanks to the collaboration with local banks and global payment giants Visa and Mastercard. Users were able to make purchases both online and offline, with the added convenience of withdrawing cash from ATMs. The digital tenge’s interoperability, functioning within and beyond Kazakhstan’s borders, is a noteworthy achievement in the realm of central bank digital currencies (CBDCs).
The pilot also tested the digital tenge in cross-border payments and CBDC-backed stablecoin issuance, reflecting Kazakhstan’s commitment to embracing decentralized finance. The National Payment Corporation of Kazakhstan (NPCK) is now set to expand the program in 2024, focusing on enhancing the digital tenge’s infrastructure and security, while also fostering greater financial inclusion through offline transactions.
As Kazakhstan continues to observe and participate in global CBDC initiatives, the country is poised to set a precedent for digital currency adoption. With a clear stance on user privacy, NPCK CEO Binur Zhalenov assures that the digital tenge will not compromise user surveillance, maintaining a balance between innovation and individual rights.
