Kazakhstan to Introduce Digital Tenge in Cross-Border Trade by 2025

The chairman of Kazakhstan’s National Payment Corporation, Binur Zhalenov, recently conducted the first retail transaction using digital tenge, emphasizing its potential in real-world transactions.

Kazakhstan officially presented its central bank’s digital currency, the digital tenge, designed to operate within a “limited environment with real users.” The National Bank of Kazakhstan initiated a pilot phase in collaboration with second-tier banks and their clients.

Kazakhstan has enlisted the support of payment giants Visa and Mastercard to integrate digital tenge onto their cards. Binur Zhalenov anticipates significant platform development in the coming year, aiming for a robust partnership with financial market participants.

Zhalenov highlighted the versatility of digital tenge for applications such as smart contracts, financial services, and transactions involving digital assets. The CBDC’s future development includes offline payments in 2024 and integration into cross-border trade by 2025.

The National Payment Corporation of Kazakhstan plans to complete the full implementation of digital tenge by the end of 2025. This involves expanding services, application scenarios, and increased active participation from platform users.

Payments using digital tenge will be facilitated through second-tier banks and payment organizations. To convert cash or electronic money into digital tenge, individuals need to open a specific account by contacting a connected second-tier bank. Currently, five second-tier banks, including Eurasian Bank, BCK, Altyn Bank, National Bank, and Kazpost, are involved in the digital tenge project, each developing its own card based on digital tenge technologies.

Accessing digital tenge requires an existing banking application from one of the five project participants, ensuring a seamless transition for users.