Kazakhstan to make digital tenge mandatory for certain government spending
Translated from English, summarized and contextualized by DistantNews.
At a glance
- Kazakhstan's National Bank is expanding the use of the digital tenge, a third form of national currency.
- The digital tenge will become mandatory for specific government expenditures, including medical equipment and vehicle procurement.
- This move aims to enhance transparency and prevent misuse of funds in various sectors like road construction and business support.
Kazakhstan is actively advancing its financial sector digitalization with the expanding use of the digital tenge. The National Bank announced that the digital currency will become mandatory for several government expenditures, including the procurement of medical equipment, vehicles, fuels, and lubricants. This initiative is part of a broader strategy to modernize the national currency, which already exists alongside cash and non-cash forms.
The digital tenge, described as tokens with "programmable" payment capabilities, is designed to track fund movements and prevent misuse. The government aims to integrate it into various sectors, including road construction, energy infrastructure modernization, budget loans, small and medium-sized business support, and tax administration. Prime Minister has previously instructed officials to accelerate its introduction in over 100 major projects.
The countryโs payment turnover over the first five months of 2026 amounted to 677 trillion tenge, with more than 90 percent of payments processed by the National Bankโs payment systems.
This digitalization push is partly a response to identified corruption loopholes, particularly in the road sector where 1,200 such issues were reported. By tracking budget funds on the Digital Tenge platform, authorities hope to increase transparency and accountability.
Together with the Ministry of Finance, we have regulated the mandatory use of the digital tenge for a number of types of government expenditures, such as the procurement of medical equipment, vehicles, fuels and lubricants, and others.
Originally published by Tengrinews in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.