Kazakhstan's Central Bank Reports Successful Digital Tenge Pilot Project

In a recent development, the Central Bank of Kazakhstan has reported the resounding success of its pilot project involving the digital tenge. This project, launched just a month ago, aimed to test the practicality and acceptance of the digital tenge in everyday retail transactions.

As part of this pilot project, Kazakh authorities introduced plastic debit cards linked to the digital tenge, which function much like conventional plastic cards and can be used at any point of sale that accepts credit and debit card payments. Additionally, the digital tenge can be used in conjunction with the local transportation card, Onay. Local postal services facilitated the processing of transactions involving the digital tenge.

One significant aspect of the pilot launch of the digital tenge was its contribution to providing free meals to schoolchildren in Astana. In this case, the Onay transportation card was utilized. Notably, the digital tenge could be used not only within Kazakhstan but also internationally, thanks to partnerships with Visa and Mastercard. The Central Bank's report emphasizes that this level of compatibility for a state-issued digital currency is a first.

Looking ahead, the Central Bank plans to test offline transactions with the digital tenge, recognizing that some regions of Kazakhstan face challenges with internet connectivity. Furthermore, there are plans to use the digital tenge in international settlements. It's worth recalling that the testing of Kazakhstan's Central Bank Digital Currency (CBDC) began in mid-November. This successful pilot project marks a significant step forward in the adoption of digital currencies in the nation.