Kazakhstan to Officially Launch Digital Tenge on July 18

Kazakhstan is set to officially launch the digital tenge on July 18, marking a significant advancement in its central bank digital currency (CBDC) project, which has been in development since 2021. This launch signifies the digital tenge's integration as a legal form of the national currency, existing alongside physical cash and traditional non-cash forms of money.

Amendments to Kazakhstan's legislation governing financial markets, communications, and bankruptcy have paved the way for this introduction. Under the new framework, the National Bank of Kazakhstan (NBK) will be the sole authorized entity responsible for issuing, circulating, and redeeming the digital tenge. Users will access digital wallets through the NBK's dedicated Digital Tenge Platform, with banks and other licensed payment providers facilitating access via their existing applications and services.

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We do believe that the digital economy requires digital means of payment.

The legislation outlines that digital accounts will be opened upon customer request, following an agreement with a participating financial institution. Transactions are limited to the available balance, and savings digital accounts are not permitted. Key functions of these accounts include receiving and transferring digital tenge, exchanging it for cash or bank account funds, providing transaction statements, and executing legally mandated seizures. The platform will also support smart contracts and tokenized digital tenge, adhering to rules set by the National Bank.

Binur Zhalenov, the National Bank's Digital Transformation Adviser, described the rollout as an "absolutely logical step" in Kazakhstan's broader digital transformation. He emphasized that the digital economy necessitates digital payment methods, aiming to provide end consumers with secure, cheap, and safe transactions. Unlike funds held in commercial bank accounts, which represent claims on private banks, the digital tenge is a direct liability of the National Bank, offering the same security as physical cash while remaining entirely digital.

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Many people confuse digital money with electronic money. The thing is that there should be no difference for the end consumer. The end consumer just wants secure, cheap, safe payments.