Binur Zhalenov, Chairman of Kazakhstan’s National Payment Corporation (NPC), marked a historic moment at the XI Congress of Finance in Almaty on Wednesday by conducting the inaugural transaction with the country’s newly introduced Central Bank Digital Currency (CBDC), the digital tenge.<h2 id="header-0">Digital tenge debit card</h2>That’s <a href="https://kapital.kz/finance/120788/v-kazakhstane-provedena-pervaya-tranzaktsiya-s-tsifrovym-tenge.html" rel="noopener noreferrer nofollow">according</a> to a report published by local media outlet, Kapital.kz. Utilizing a debit card linked to the CBDC account, Zhalenov demonstrated the practicality of the digital tenge during his speech, showcasing its potential impact on the nation’s financial landscape.The official launch of the digital tenge on the retail market is expected to usher in a wave of development, with Zhalenov outlining that it will result in massive platform development in 2024. Collaborating with global giants Visa and Mastercard, as well as local banks, Kazakhstan aims to integrate the CBDC into plastic cards, enabling users to make digital tenge payments globally through platforms like Apple Pay and Samsung Pay.Eurasian Bank is one of the local banking participants in the project. Its CEO, Lyazzat Satiyeva, <a href="https://fintech.global/2023/11/17/eurasian-bank-and-mastercard-unveil-groundbreaking-digital-tenge-card-in-kazakhstan/" rel="noopener noreferrer nofollow">commented</a> on the development:“Participation in the ‘Digital Tenge’ project opens up opportunities for launching innovative products for consumers and businesses using blockchain and cryptocurrency technology, developing a regulatory framework for digital assets and, in general, this is a big step in the development of a new digital economy in the country.”Meanwhile, Zhalenov emphasized the programmable capabilities of the digital tenge, envisioning its utilization in smart contracts, innovative financial services and digital asset transactions. Looking ahead, the CBDC’s development roadmap includes a focus on offline payments in 2024, with ambitions to incorporate the digital tenge into cross-border trade by 2025.The journey towards the digital tenge commenced in February 2023, with the NPC, <a href="https://coinmarketcap.com/community/articles/6508fbaa87b6195503af2176/" rel="noopener noreferrer nofollow">established</a> in September, spearheading the development and implementation of the CBDC. The launch of the NPC was likened to a restructuring of the Kazakhstan Center for Interbank Settlements. Its mandate includes overseeing interbank clearing services, managing digital identification and enabling money transfers.As Kazakhstan strides into the digital era, parallel measures have been taken to tighten oversight of the cryptocurrency market.<h2 id="header-1">‘Great Kazakh investment firewall’</h2>While the central Asian country may be progressing its CBDC, authorities in Kazakhstan appear to be taking a different approach to international crypto businesses operating within its borders. In September, reports<a href="https://medium.com/&#64;coinness.gl/kazakhstan-setback-for-coinbase-as-government-blocks-website-access-be0e6c6fe765" rel="noopener noreferrer nofollow"> surfaced</a> of difficulties accessing major international crypto exchanges such as Coinbase and Kraken without a local license. Following this, local crypto mining operators addressed President Kassym-Jomart Tokayev in an <a href="https://digitalbusiness.kz/2023-09-28/kompanii-mayneri-pozhalovalis-tokaevu-na-neposilnuyu-platu-za-tsifrovoy-mayning/" rel="noopener noreferrer nofollow">open letter</a> in October, urging a reconsideration of newly introduced tax rates on mining activities.Kazakhstan’s advancement of the digital tenge signals a transformative phase in the nation’s financial landscape, aligning with global trends in digital currency adoption. As the NPC continues its strategic development, the intersection of traditional finance and emerging digital assets in Kazakhstan is poised for further evolution.

Kazakhstan achieves first retail payment with digital tenge

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