In November 2023, within the framework of the XI Congress of Financiers of Kazakhstan, the National Payment Corporation, in collaboration with the republic’s partners, announces the launch of the Digital Tenge (DT) – an innovative digital currency that will become the third form of Kazakhstan’s national currency. The inaugural launch ceremony took place today in the capital, Nur-Sultan, where the first DT transaction was conducted by the Chairman of the National Payment Corporation, Binur Zhalenov.
“I emphasize that our initiative becomes the world’s first implementation of a debit payment card closely tied to the central bank’s digital currency,” stated Binur Zhalenov during the ceremony.
In 2021, the Bank for International Settlements (BIS) conducted a survey among central banks of 65 countries, revealing that 86% of central banks explored the potential introduction of national digital currencies. With 60% in the experimental technology stage and 14% implementing pilot projects, Kazakhstan emerges as a pioneer in this field, providing an innovative solution that vividly demonstrates the country’s leadership in advancing digital finance and underscores its role as a dependable partner in the global community.
The experience of other countries, such as China’s successful integration of the digital yuan in 2022, or Sweden conducting trials of the digital krona highlights global interest in digital currencies. This international experience serves as a model for Kazakhstan, opening new perspectives for the development of digital finance and strengthening its position in the global economy.
The Digital Tenge combines the benefits of both cash and cashless payments, allowing for offline usage and supporting up to 15 transactions in a single offline sequence. It is also integrated with international payment systems Visa and Mastercard, as well as the transport card operator Onay. The integration technology of existing payment cards with the digital tenge platform enables citizens to make transactions in DT anywhere in the world using popular systems such as ApplePay and SamsungPay.
This digital currency, developed on blockchain technology, not only facilitates transactions with cryptocurrencies but can also be used for various digital assets. Moreover, Kazakhstan is among the first countries to successfully test the SWIFT platform for cross-border payments in collaboration with 25 other central banks.
“The Digital Tenge is available to any Kazakh citizen worldwide without the need for additional applications or device purchases. Additionally, the currency can be withdrawn from any ATM,” added Zhalenov.
To commence using the Digital Tenge, Kazakh citizens need to open a special bank card. In the near future, plans include expanding functionality, allowing for account openings through existing bank cards.
The Digital Tenge will not only serve as a powerful tool for the development of Kazakhstan’s financial market but will also stimulate financial inclusivity, foster innovation, and provide convenience for citizens in conducting digital transactions. This is a significant step in the advancement of global financial technologies, and Kazakhstan is ready to share its experience with other nations seeking to implement digital currencies in their financial systems.
