The National Bank of Kazakhstan has created the National Payment Corporation to lead the development and implementation of the digital tenge, the country's central bank digital currency (CBDC). This move aims to bolster Kazakhstan's digital financial infrastructure and foster collaboration between traditional finance and decentralized finance (DeFi) to enhance financial inclusion and support international trade.
Kazakhstan Takes Significant Step Toward Digital Tenge Implementation
The National Bank of Kazakhstan (NBK) has embarked on a pivotal journey toward the development and implementation of the digital tenge, the country's central bank digital currency (CBDC). This strategic move involves the establishment of a dedicated entity, the National Payment Corporation (NPC), which will play a central role in driving this transformative initiative.
The NPC represents a reorganization of the Kazakhstan Center for Interbank Settlements and will assume responsibility for various critical functions within the national payment system. This includes overseeing interbank clearing services, facilitating money transfers, and enhancing digital identification processes.
Furthermore, the NPC will spearhead the development of the "digital financial infrastructure," a critical component for the successful implementation of the digital tenge.
The journey toward creating the digital tenge commenced in February 2023, with an ambitious launch deadline set for 2025. The NBK envisions a future where the digital age fosters collaboration between traditional finance and decentralized finance (DeFi). This collaborative approach holds the potential to significantly boost financial inclusion and provide robust support for international trade.
Currently, the CBDC pilot program in Kazakhstan is undergoing a controlled environment pilot phase, featuring real consumers and merchants. The project has garnered significant support from the world's largest cryptocurrency exchange.
The largest cryptocurrency exchange's involvement in Kazakhstan extends beyond the CBDC initiative, as it recently introduced a regulated digital asset platform in collaboration with local partner Freedom Finance Bank. This platform enables users to seamlessly transfer fiat funds to their accounts on the Binance platform, further advancing the nation's digital financial ecosystem.
Kazakhstan's commitment to the digital tenge signals a significant step toward the future of digital finance, with the potential to reshape financial inclusion and international trade dynamics.
(DAVID ATTLEE, CoinTelegraph, 2023)