The advantages of blockchain technology have pushed the world’s states to work in this direction. China has already put its own digital currency in circulation and is continuing its tests with heavy use by citizens. We know that many countries have made serious progress on CBDC, but what about Kazakhstan?
The National Bank of Kazakhstan announced that it has decided to present some results of the CBDC study to stakeholders in July 2022 and to launch a digital tenge by December. Kazakhstan, the country behind one of the largest sources of bitcoin mining hash power, has published the results of a pilot program for digital tenge.
According to a report released Wednesday, the National Bank of Kazakhstan (NBK) said it has confirmed the possibility of implementing a CBDC based on distributed ledger technology. Additionally, the central bank tested how Kazakhstani citizens can use the digital tenge for offline payments and its programmability.
The Central Bank tested how CBDC could be used among second-tier banks and other external participants. The tests also explored how digital tenge would work for cross-border transactions under Kazakhstan’s regulatory framework. The results of the report suggested expanding the CBDC pilot program to include market participants and infrastructure players for different scenarios, as well as suggesting descriptive language to be used by the country’s regulators.
In addition, the bank has proposed to launch a Digital Tenge Center that allows market participants to assist in the development of the CBDC.
The report includes the following details:
The Central Bank will ensure the development of a final model for deciding on the digital tenge monument.
In July 2022 he will hold a presentation of the interim results of the work and discussion with all stakeholders.
A decision on the necessity of introducing [digital tenge] will be made in December 2022, taking into account the final results of a comprehensive study based on the developed model.
Kazakhstan began a public consultation on a possible digital tenge offering in May, and the central bank said at the time that a CBDC would not replace cash or cashless payments. Since then, many crypto miners, escaping a regulatory crackdown in China, have started their operations in Kazakhstan.