The digital tenge, the central bank digital currency (CBDC) of Kazakhstan, has been hailed as a triumph following a month-long pilot program. Plans for a range of enhancements in business, regulatory, and technical aspects are in the pipeline for 2024. The success of the digital tenge has been evident in a variety of applications, including the provision of free school meals to children in Almaty via the local Onay! card, originally designed for transit use.
Key Achievements of the Digital Tenge Pilot
The digital tenge pilot was marked by several notable achievements:
- The Kazpost postal system operator acted as the intermediary for transactions involving the digital tenge.
- Plastic cards were distributed to focus group members by four local banks in collaboration with Visa and Mastercard, enabling users to make purchases both online and in-person, as well as withdraw cash from ATMs.
- The flexibility of the digital tenge was demonstrated as merchants could either accept it or convert it into “non-cash” tenge.
- The digital tenge was successfully integrated into existing point-of-sale and QR systems, marking a first for a CBDC in terms of interoperability.
Further Experiments with the Digital Tenge
Additional experiments with the digital tenge included making cross-border payments via SWIFT and issuing CBDC-backed stablecoins on Binance and KASE platforms. The digital tenge was also used to tokenize gold, collect value-added tax through a smart contract, and trial a move-to-earn app.
Future Goals for the Digital Tenge
The National Bank of Kazakhstan and the National Payment Corporation of Kazakhstan (NPCK), which was established in September to manage the national CBDC, have set several ambitious goals for 2024. These include:
- Increasing the number of intermediary banks.
- Further developing decentralized finance applications.
- Scaling offline transactions, which would significantly enhance financial inclusion in the country, especially in areas with limited internet connectivity.
- Boosting participation in cross-border payment projects.
- Implementing regulatory and legislative goals.
- Enhancing the security and processing speed of the digital tenge.
Furthermore, NPCK CEO Binur Zhalenov has assured that the digital tenge will not be used for user surveillance.
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In conclusion, the digital tenge success marks a significant step forward in the world of digital currencies, setting a precedent for other nations to follow.
