National Bank of the Republic of Kazakhstan on the situation with the implementation of digital currency

In 2021, the National Bank announced studies on the possibility of introducing a digital version of the national currency, after the announcement a pilot project began on the use of digital tenge by real users, and practical research is ongoing.

The research team plans to develop a comprehensive decision on whether the economy needs a digital tenge at all by December 2022. The task of introducing a digital national currency for the sake of introducing is not worth it, the entire focus is on consumers. The methodology for assessing the data of the pilot project and making a decision on the fate of the digital tenge was developed jointly with the Bank for International Settlements and world experts. Based on this model, an analysis will be carried out, but by December, an independent international advisory council, where there will be no employees of the National Bank and the financial sector, will give their opinion and recommendations, taking into account this assessment, a final decision will be made on the implementation of digital currency.

Digital tenge, if implemented, will be the third form of money along with cash and non-cash money, this will require amendments to the legislation in order to prescribe the definition of the digital tenge, its status, and operating model, as well as consumer protection.

It was thought that digital tenge would increase the availability of non-cash payments in Kazakhstan, digital tenge could be paid offline without access to the Internet. It is also expected that the digital tenge will serve as an impetus for the growth of innovations in the market, and the creation of new financial services.