Kazakhstan is preparing for the launch of its central bank digital currency (CBDC), the digital tenge, with a senior national bank executive making the first transaction on Wednesday.
As the adoption of blockchain technology picks up pace, central banks have been working to introduce their own CBDCs. One of the common factors among CBDCs is the ease of payments and cross-border transactions.
Kazakhstan Buckles up for Large-Scale Digital Tenge Developments
The Chairman of the National Payment Corporation of the National Bank of Kazakhstan, Binur Zhalenov, demonstrated the first digital tenge transaction through a debit card linked to a CBDC account.
“Today [Wednesday] we will launch the digital tenge into retail circulation, and next year we are counting on the large-scale development of the platform together with our partners, financial market participants, more and more innovative services will appear.”
Elaborating on the services, Zhalenov said that next year, the bank will enable offline payments with digital tenge. Moreover, the CBDC will be programmable. Zhalenov further explained:
“Essentially, this is smart money that can be used in smart contracts, innovative financial services, secure payments with digital assets and much more.”
While Kazakhstan is preparing for its CBDC rollout, it has taken strict action against the non-licensed crypto businesses. Earlier this month, BeInCrypto reported that the nation blocked Coinbase’s website, alleging that it did not comply with the digital assets laws.
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Along with Kazakhstan, many other countries are working on adopting a central bank digital currency.
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