Binur Zhalenov, Chairman of Kazakhstan’s National Payment Authority (NPC), made an important step in the field of central bank digital currency (CBDC) by conducting the first transaction with a bank card linked to the CBDC account. According to local news outlet Kapital kz, during his speech at the XI Finance Congress held in Almaty on November 15th, Zhalenov made a payment with a bank card linked to the CBDC account.
First Steps of Digital Tenge Taken
Zhalenov officially launched the digital tenge in the Kazakhstani market today and promised the development of a massive payment platform by 2024. According to the official, Kazakhstan is collaborating with international payment solutions Visa and Mastercard, as well as local banks, to integrate the CBDC solution into plastic cards. Zhalenov commented:
“Apple Pay, Samsung Pay, and other mobile devices allow you to make payments with digital tenge from anywhere in the world.”
Zhalenov also highlighted the potential of a programmable project that can be used in innovative financial services and crypto asset transactions in smart contracts included in the digital tenge project. According to him, next year, the development in the CBDC project will focus on offline payments, and by 2025, NPC is expected to adopt digital tenge in cross-border trade.
The first step for the development of the digital tenge was taken in February 2023, and the initial launch date was announced as 2025. NPC itself was established in September to lead the development and operation of the CBDC project.
Crypto Regulations Continue in Kazakhstan
In parallel with the rapid implementation of the CBDC project, Kazakh authorities have decided to tighten their scrutiny of the crypto market. According to local media reports in September, Coinbase, Kraken, and other major international crypto exchanges noticed difficulties in accessing them without a local license.
In October, local crypto mining operators signed an open letter to President Kassym-Jomart Tokayev, demanding a reduction in the newly imposed tax rates on their operations. Company officials who complained about the tax burden on mining activities had decided to end their operations due to this issue.
