The chairman of Kazakhstan’s National Payment Corporation (NPC), Binur Zhalenov, made history by conducting the inaugural transaction using the country’s newly introduced central bank digital currency (CBDC) known as the digital tenge.
This significant milestone took place during his address at the XI Congress of Finance in Almaty on November 15, where he used a debit card linked to the CBDC account for the payment, as reported by the local news outlet, Kapital.kz.
Zhalenov officially launched the digital tenge on Kazakhstan’s retail market, signaling the beginning of what he described as the “massive platform’s development” set to unfold in 2024.
Kazakhstan forged partnerships with global payment giants Visa and Mastercard, in addition to collaborating with local banks, to seamlessly integrate the CBDC into plastic cards.
Zhalenov noted that this innovation enables users to make payments using the digital tenge from anywhere in the world, including through popular payment platforms like Apple Pay and Samsung Pay.
Emphasizing the digital tenge’s versatility, Zhalenov highlighted its programmable capabilities, paving the way for applications in smart contracts, cutting-edge financial services, and digital asset transactions.
READ MORE: Global Leaders Gather at APEC Summit in San Francisco to Discuss Economy and Digital Assets
Looking ahead, the development of the CBDC will shift its focus to enabling offline payments in 2024, with the National Payment Corporation (NPC) aiming to implement the digital tenge in cross-border trade by 2025.
The journey towards the digital tenge commenced in February 2023, with an initial target launch date of 2025. The NPC, established in September, assumed the pivotal role of spearheading the development and execution of the CBDC project.
Concurrently with the swift rollout of the CBDC, Kazakh authorities have intensified their oversight of the cryptocurrency market.
In September, local media reported difficulties in accessing major international cryptocurrency exchanges such as Coinbase and Kraken without a valid local license.
Subsequently, in October, local crypto mining operators collectively addressed President Kassym-Jomart Tokayev, urging a revision of the newly introduced tax rates imposed on mining activities.
The debut transaction with the digital tenge marks a significant step forward in Kazakhstan’s digital financial landscape, showcasing the nation’s commitment to embracing innovative digital payment solutions while concurrently addressing regulatory challenges in the broader cryptocurrency ecosystem.
Discover the Crypto Intelligence Blockchain Council
