Kazakhstan’s central bank has completed the second phase of testing its digital currency and released a white paper. The studies carried out by the regulator on its introduction did not identify any significant risks for the financial stability and the economy of the country.
Kazakhstan Monetary Authority reports on the progress of the Digital Tenge pilot project
The National Bank of Kazakhstan (NBK) has announced the successful completion of the platform’s second testing phase for its central bank digital currency (CBDC). The results of the trials and the study on the need for the new version of the national fiat, the tenge, were presented in a white paper published by the regulator.
The first phase of the pilot was conducted between July and December 2021, when a prototype was developed to test the viability of the CBDC concept, detailed an announcement, as cited by RBC Crypto. During the second stage, from January to December 2022, the platform was fine-tuned and experiments began with financial market players and users.
According to the bank, the research has confirmed that the digital tenge is a feasible project. Once introduced, the CBDC can increase the availability of financial services, including through functionality enabling offline transactions as well as the offering of new products and services. A consumer survey indicated that the majority would use the coin.
NBK will add participants and launch new services in the next phase of the CBDC project
The third phase of implementation of the digital national currency will begin in January and will continue throughout 2023. Next year, the developers plan to introduce a solution for commercial use. During the fourth stage, which is expected to end in December 2025, the NBK will invite more participants and launch additional services.
In October, Binance Founder and CEO Changpeng Zhao announced on Twitter that NBK plans to use the Bnb chain for the digital tenge rollout. The world’s largest crypto-trading platform has been licensed to operate as a digital asset exchange and custody service provider from the Astana International Financial Center (AIFC), the country’s financial hub .
Authorities in Kazakhstan, which has emerged as a major mining hub since China clamped down on the industry in 2021, have also worked to more comprehensively regulate crypto-related activities. Earlier in December, the lower house of parliament, the Mazhilis, passed a dedicated bill which, besides mining, deals with crypto trading and taxation.
What future for cryptocurrencies in Kazakhstan do you expect after the launch of the digital tenge? Share your thoughts in the comments section below.
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