In a significant step for digital currency, Binur Zhalenov, the chairman of Kazakhstan’s National Payment Corporation (NPC), has conducted the first transaction using the nation’s central bank digital currency (CBDC), the digital tenge. The transaction, which took place at the XI Congress of Finance in Almaty on Nov. 15, was completed using a debit card linked to a CBDC account, as reported by Kapital.kz.
Zhalenov announced the digital tenge’s debut in Kazakhstan’s retail sector, indicating an extensive expansion of the platform in 2024. The development involved partnerships with Visa and Mastercard, and local banks to facilitate the use of the digital tenge through plastic cards:
The programmable nature of the digital tenge, which allows for use in smart contracts, innovative financial services, and digital asset transactions, was a highlight of Zhalenov’s presentation. The focus for 2024 will be on enabling offline payments with the digital tenge, and by 2025, the NPC plans to implement it in cross-border trade.
The journey towards the digital tenge began in February 2023, with an initial launch target set for 2025. The NPC was specifically established in September to spearhead the CBDC’s development and launch.
Alongside the rapid deployment of the CBDC, Kazakhstani authorities have increased their oversight of the cryptocurrency market. Recent observations indicated access issues to major international crypto exchanges like Coinbase and Kraken without a local license. Furthermore, in October, Kazakhstani crypto mining operators penned an open letter to President Kassym-Jomart Tokayev, requesting a reduction in the newly introduced mining taxes.