Kazakhstan’s Digital Tenge: A New Era in CBDC´s

Kazakhstan is on the brink of a significant financial evolution with the impending launch of its central bank digital currency (CBDC), the digital tenge. This development marks a major milestone in the global adoption of blockchain technology, particularly in the realm of state-backed digital currencies.

First Transaction Marks a Historic Moment

In a groundbreaking move, a senior executive at the National Bank of Kazakhstan executed the first transaction using the digital tenge. This event signals the readiness of the country to embrace the new digital currency and its underlying technologies. The transaction, conducted through a debit card linked to a CBDC account, paves the way for a new era of digital banking in Kazakhstan.

Collaboration with Visa and Mastercard

Kazakhstan’s journey towards the digital tenge has been bolstered by partnerships with global payment giants Visa and Mastercard. This collaboration ensures that the digital tenge will be supported through widely accepted card platforms, enhancing its accessibility and usability for everyday transactions.

Speaking at the XI Congress of Kazakhstani Financiers, Binur Zhalenov, Chairman of the National Payment Corporation of the National Bank of Kazakhstan, stated: “Today [Wednesday] we will launch the digital tenge into retail circulation, and next year we are counting on the large-scale development of the platform together with our partners, financial market participants, more and more innovative services will appear.”

The digital tenge is set to offer a range of innovative features, including the ability to conduct offline payments starting next year. Additionally, the CBDC will be programmable, allowing for its integration into smart contracts and the facilitation of secure digital asset transactions.

While Kazakhstan is gearing up for its CBDC rollout, it has also taken a firm stance against unlicensed crypto businesses, recently blocking Coinbase’s website for non-compliance with digital asset laws.

The CBDC market, currently valued at around $100 million in 2023, is projected to expand to a staggering $213 billion by 2030. This growth reflects the increasing interest and investment in digital currencies by central banks worldwide.

The global financial community, including the National Bank of Georgia and the Bank for International Settlements (BIS), is actively exploring the potential of CBDCs. There is a growing emphasis on creating interoperable frameworks for these digital currencies to facilitate seamless cross-border transactions.

Kazakhstan’s digital tenge represents a significant step forward in the global adoption of CBDCs. As the country prepares for the widespread use of this innovative digital currency, it sets a precedent for other nations to follow in the digital transformation of their financial systems.