Kazakhstan’s Digital Tenge Shines in Successful Pilot Project, Gears Up for 2024 Expansion

Four local banks, in collaboration with Visa and Mastercard, distributed plastic cards to focus group members.

Kazakhstan’s central bank digital currency (CBDC), the digital tenge, has achieved resounding success after a one-month pilot project.

Significant enhancements in terms of business, regulation, and technology are on the horizon for 2024.

During the pilot phase, the digital tenge was employed to provide free school lunches to children in Almaty, utilizing the local Onay card initially designed for the transit system.

These transactions were facilitated by the Kazpost postal system operator.

Four local banks, in collaboration with Visa and Mastercard, distributed plastic cards to focus group members.

These cards enabled users to make in-person and online purchases while also permitting cash withdrawals from ATMs. Participating merchants were given the choice to accept digital tenge or convert them into “non-cash” tenge.

By opting for the conversion of digital tenge, these funds seamlessly integrated into existing point-of-sale and QR systems, functioning both within and outside Kazakhstan.

This level of interoperability was a groundbreaking achievement in the realm of CBDCs.

READ MORE: SEC Chair Gary Gensler Hints at Revised Approach to Bitcoin ETFs Following Recent Legal Rulings

Further experiments with the digital tenge encompassed cross-border payments via SWIFT, issuance of CBDC-backed stablecoins on the Binance and KASE platforms, tokenization of gold, collection of value-added tax through smart contracts, and the trial of a “move-to-earn” app.

Looking ahead to 2024, the National Bank of Kazakhstan and the National Payment Corporation of Kazakhstan (NPCK), established in September to oversee the national CBDC, have an extensive agenda.

Their objectives include expanding the network of intermediary banks and advancing decentralized finance applications.

Offline transactions on a large scale are a top priority, aiming to boost financial inclusion in regions with limited internet connectivity.

Increased involvement in cross-border payment projects, such as Project mBridge, is also anticipated.

Regulatory and legislative goals are in the pipeline, alongside efforts to enhance the security and processing speed of the digital tenge.

NPCK CEO Binur Zhalenov has underscored in interviews that the digital tenge will not be utilized for user surveillance, addressing privacy concerns.

The successful pilot project and the ambitious plans for 2024 position Kazakhstan’s digital tenge as a promising development in the world of central bank digital currencies.

Discover the Crypto Intelligence Blockchain Council

No information published in Crypto Intelligence News constitutes financial advice; crypto investments are high-risk and speculative in nature.