Kazakhstan Sets Date for “Digital Tenge”

Kazakhstan, the third largest Bitcoin mining center in the world after the USA and China, has found it appropriate to launch its own central bank digital currency (CBDC) digital tenge. The National Bank of Kazakhstan (NBK) announced the finding after the completion of the second phase of testing.

Binance CEO Changpeng Zhao announced that at the end of October, Kazakhstan-developed CBDC will be integrated into BNB Chain. The main motivation of the country when carrying out CBDC research; CBDCs were meant to improve financial inclusion, encourage competition and innovation in the payments sector, and increase the country’s global competitiveness.

The pilot research focused on offline payments and programmability. In addition, while it is recommended to include market participants and infrastructure players in different scenarios, the language to be used by the country’s regulators has also been clarified. With the latest research by NBK, Kazakhstan’s desire to create digital tenge has become even more tangible. The translation of the research report states:

“Given the technological improvements, infrastructure preparation and the need to establish a business model and legal framework, gradual implementation over three years is recommended.”

Kazakhstan’s central bank plans to launch CBDC in early 2023. CBDC functions are expected to be gradually expanded and eventually commercialized in 2025.

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