Kazakhstan's central bank has successfully concluded a month-long pilot project of the digital tenge, the country's central bank digital currency (CBDC). The pilot demonstrated significant potential for business, regulatory, and technical advancements in the realm of digital currency.
Pilot Applications: During the pilot, the digital tenge was utilized in various practical scenarios. It facilitated free school lunches in Almaty through the Onay card system, originally designed for transit. The digital currency was also used for tokenizing gold, collecting value-added tax via smart contracts, and trialing a move-to-earn app.
Technical Aspects and Partnerships: The pilot involved issuing plastic cards linked to the digital tenge, in collaboration with four local banks, Visa, and Mastercard. These cards enabled users to make both online and offline purchases and withdraw cash from ATMs. Additionally, cross-border payments via SWIFT and CBDC-backed stablecoins were tested on platforms like Binance and KASE.
Future Goals and Financial Inclusion: The National Bank of Kazakhstan, along with the National Payment Corporation of Kazakhstan (NPCK), aims to expand the digital tenge's applications in 2024. This includes increasing intermediary banks, developing decentralized finance applications, and facilitating offline transactions to enhance financial inclusion, especially in regions with limited internet connectivity.
User Privacy Assurance: Binur Zhalenov, CEO of NPCK, assured that the digital tenge would not be used for user surveillance, addressing one of the common concerns associated with digital currencies.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
