Kazakhstan Advances Digital Tenge with Pilot Project in China

Kazakhstan's central bank has reported success in its digital tenge pilot project, which is now set to expand into China. This pilot project, a collaboration between Kazakhstan's National Bank and several Chinese financial institutions, aims to enhance cross-border transactions and financial inclusion through the use of central bank digital currency (CBDC).

During the pilot phase, the digital tenge was used for various purposes, including providing free school lunches and facilitating transactions through local payment systems. The integration with existing payment networks, such as Visa and Mastercard, allowed for seamless in-person and online purchases, as well as ATM withdrawals. This level of interoperability marked a significant milestone for the CBDC initiative.

The pilot project also explored the use of digital tenge for cross-border payments via SWIFT and the issuance of CBDC-backed stablecoins on platforms like Binance. The success of these initiatives underscores the potential for digital currencies to streamline international trade and enhance financial security.

Looking forward, Kazakhstan's central bank plans to further develop the digital tenge's capabilities, focusing on offline transactions and expanding its use in cross-border trade by 2025. This strategic move aligns with Kazakhstan's broader goals of integrating digital currencies into its financial system and promoting innovation in the financial sector.

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