National Bank of Kazakhstan Releases Digital Tenge Project Research Report for Public Discussion
NUR-SULTAN – The National Bank of Kazakhstan has announced plans to launch a pilot project focusing on digital tenge, the organization’s press service reported on May 5.
“A national digital currency is a promising asset and obligation of the National Bank of Kazakhstan and will be represented in digital form. Digital tenge will be legal tender, a measure of economic value and a store of value. A two-tier architecture is supposed to implement the platform, where the financial market players will provide payment services and the National Bank will provide the infrastructure, ”the statement read.
The bank will study the benefits and risks and define the tasks solved by the digital currency, the mode of its creation and distribution, the technology used, the impact on monetary policy, financial stability and the payments ecosystem.
The bank plans to carry out this work jointly with financial market players, the community of experts and international partners.
Based on the results of this work, the bank will decide on the need to introduce digital tenge with the requirements of technological infrastructure and regulation of issues related to national digital currency, as well as consumer protection.
The National Bank has also published a research report for public discussion. He says Kazakhstan has joined the list of countries involved in the study of digital currencies. The bank announced the launch of a research project on the implementation of digital currency in November 2020.
The most common reasons for issuing a digital currency are increasing the availability of financial services, improving the efficiency of payments and developing cross-border payment systems.