The National Bank of Kazakhstan (NBK) has taken a significant step towards creating and implementing its central bank digital currency (CBDC), known as the digital tenge. In an official announcement made on September 15, they introduced the National Payment Corporation (NPC), marking a transformation of the Kazakhstan Center for Interbank Settlements. This new entity will oversee the national payment system, encompassing interbank clearing services, money transfers, and digital identification processes.
Furthermore, the NPC will play a pivotal role in shaping the “digital financial infrastructure,” a critical component in the eventual launch of the digital tenge. The journey towards developing this digital currency commenced in February 2023, with a set launch deadline 2025. Berik Sholpankupov, the NBK deputy governor, had previously articulated the bank’s vision of fostering a synergistic relationship between traditional finance and DeFi to enhance financial inclusion and bolster international trade.
Kazakhstan’s CBDC pilot program is currently in its controlled environment phase, actively involving real consumers and merchants. Notably, one of the principal collaborators in this endeavour is the world’s largest cryptocurrency exchange, Binance. The company provides crucial technical support to the pilot through its BNB Chain solution.
In a separate development earlier in the year, Binance unveiled a regulated digital asset platform established in partnership with the local Freedom Finance Bank in Kazakhstan. This platform enables users to seamlessly transfer fiat funds to their accounts on the Binance platform, further cementing the country’s position in the world of digital finance.
