Kazakhstan Debuts Digital Tenge, Ushering New Era in Finance

In a significant step for Kazakhstan’s digital finance, Binur Zhalenov, the chairman of the National Payment Corporation (NPC), has officially introduced the “digital tenge” into the country’s retail market. During his speech at the XI Congress of Finance in Almaty, Zhalenov demonstrated the digital tenge’s functionality by making the first transaction using a debit card linked to a central bank digital currency (CBDC) account. This development marks a milestone in Kazakhstan’s journey towards digital finance, showcasing the nation’s commitment to embracing technological advancements in the banking sector.

Moreover, the digital tenge’s launch signifies a leap forward in Kazakhstan’s financial technology. This innovation promises to streamline transactions and foster a more efficient economy. The digital currency is designed to offer a seamless payment experience, integrating effortlessly with popular payment platforms like Apple Pay and Samsung Pay. This integration ensures users can transact with the digital tenge globally, enhancing its utility and appeal.

Kazakhstan Partners with Visa for Digital Tenge

Furthering the digital tenge’s integration, Kazakhstan has collaborated with major financial entities like Visa and Mastercard, alongside local banks. This partnership underlines the NPC’s commitment to ensuring the digital tenge’s compatibility with existing payment infrastructures. Such collaboration paves the way for a smoother transition for consumers and merchants, bridging the gap between traditional and digital banking.

Additionally, Zhalenov highlighted the programmable potential of the digital tenge. This feature is particularly exciting as it opens doors to innovative applications in smart contracts, digital asset transactions, and new financial services. The NPC plans to focus on enabling offline payments with digital currency in 2024. By 2025, the organization aims to expand the digital tenge’s application to cross-border trade, further solidifying its position in the global digital currency landscape.

New Tax Rates Spark Mining Concerns

While Kazakhstan accelerates its digital currency initiative, authorities are simultaneously tightening regulations in the crypto market. Recent months saw increased scrutiny over crypto exchanges operating without a local license. This regulatory shift aligns with the government’s approach to balancing digital innovation with financial security.

Local crypto-mining operators have contacted President Kassym-Jomart Tokayev in response to these regulatory changes. They are seeking a revision of the new tax rates imposed on their activities, highlighting the need for a balanced approach to regulation that fosters growth while ensuring compliance and security.

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