Key Points
- 1. Kazakhstan is launching its digital tenge project, developed since 2021, on 18 July.
- 2. The digital tenge is gaining legal status as an official payment instrument equivalent to cash and bank money.
- 3. The National Bank was designated as the sole authorized issuing and management body for the digital tenge.
- 4. Digital accounts can only be opened upon customer request, and saving will not be allowed in these accounts.
By the Numbers
Kazakhstan is preparing to officially launch the digital tenge on 18 July as part of its central bank digital currency (CBDC) project. This project, which has been under development since 2021, stands out as one of the country's most significant steps in the field of financial technology.
With the new regulations, the digital tenge will be recognized as one of the official forms of national currency and will attain a status equivalent to physical cash and money in bank accounts. The digital tenge will be a direct obligation of the National Bank (NBK); this will provide it with a strong guarantee like physical cash while allowing it to remain entirely digital.
The digital wallets, which will be operated through the Digital Tenge Platform, the infrastructure of the system, will be delivered to users via existing banking applications. Saving will be prohibited in these digital accounts, which allow transactions to be made based on the available balance. Additionally, the system will support smart contracts and the tokenized use of the digital tenge.
React to this story
Ask about this story
Answers are AI-generated from this story only.
Frequently Asked Questions
- What is the difference between the digital tenge and money in a bank account?
- While money in bank accounts represents a claim right against commercial banks, the digital tenge is a direct obligation of the National Bank and has the same guarantee as physical cash.
- How will digital tenge wallets be used?
- Users will be able to access their digital tenge wallets through existing banking applications by signing contracts with partner financial institutions, and they will be able to make payments or transfers up to the available balance in their accounts.
- What cannot be done with digital tenge accounts?
- According to the new law, digital tenge accounts cannot be used for saving purposes, and transactions exceeding the available balance in the account cannot be made.
This is an AI-generated summary. The full story lives at the source.
Read the full story at the sourceastanatimes.comHow we produce our content →