Binur Zhalenov, the chairman of Kazakhstan's National Payment Corporation (NPC), has conducted the inaugural transaction with the country's central bank digital currency (CBDC), the digital tenge. The announcement was made during Zhalenov's speech at the XI Congress of Finance in Almaty, where he paid using a debit card linked to the CBDC account. The NPC aims to develop the digital tenge platform significantly in 2024, with plans for integration with major card networks like Visa and Mastercard. The CBDC's programmable features are highlighted, allowing its use in smart contracts and digital asset transactions.
Binur Zhalenov, the chairman of Kazakhstan's National Payment Corporation (NPC), has marked a historic moment by conducting the first transaction with the country's newly introduced central bank digital currency (CBDC), the digital tenge. The announcement was made during Zhalenov's speech at the XI Congress of Finance in Almaty.
As part of the launch of the digital tenge on Kazakhstan's retail market, Zhalenov used a debit card linked to the CBDC account to make a payment. This move represents a significant step forward in the adoption and utilization of the digital tenge in everyday transactions.
During his address, Zhalenov also shared details about the collaborative efforts between Kazakhstan and major card networks such as Visa and Mastercard, along with local banks. The integration of the CBDC into plastic cards enables users to make payments with the digital tenge globally through platforms like Apple Pay and Samsung Pay.
Zhalenov emphasized the programmable nature of the digital tenge, highlighting its potential applications in smart contracts, innovative financial services, and digital asset transactions. Looking ahead, the NPC plans to focus on the further development of the CBDC in 2024, with an emphasis on enabling offline payments. By 2025, the digital tenge is expected to be integrated into cross-border trade transactions.
The development of the digital tenge commenced in February 2023, with an initial target for a full launch set for 2025. The NPC, established in September, plays a pivotal role in leading the development and implementation of the CBDC.
It's noteworthy that the launch of the digital tenge comes amid increased regulatory scrutiny over the cryptocurrency market in Kazakhstan. In recent months, there have been reports of challenges accessing major international crypto exchanges, such as Coinbase and Kraken, without a local license. Additionally, local crypto mining operators have expressed concerns about newly introduced tax rates on mining activities and have called for adjustments through an open letter to President Kassym-Jomart Tokayev.
(DAVID ATTLEE, COINTELEGRAPH, 2023)