The Central Bank of Kazakhstan has presented a report for public discussion on the issue of digital national currency.
The National Bank of the Republic of Kazakhstan intends to study in detail the advantages and risks of introducing the digital tenge. The regulator said in a report for public discussion.
The regulator said it plans to carry out the work together with financial market participants, the expert community and international partners. According to the report, the digital tenge will be exclusively “an additional form of money.
The digital tenge will resemble the digital ruble in its architecture. The regulator intends to maintain a two-tiered component so that banks will continue to provide intermediary services. The regulator also claims that the digital tenge technology “will meet the highest standards of cybersecurity.” Exactly what kind, however, remains unknown.
The 2021 digital tenge roadmap includes the following key five steps:
a consultative report
series of discussions
report on the results of the pilot project
A decision to launch a full-scale project
Nevertheless, the timeframe of each stage remains unknown. It is worth noting that the Central Bank of Kazakhstan announced work on digital currency against the background of Georgia’s decision to explore the issue of digital lari. The Central Bank of Georgia acknowledged that the central bank’s digital currency (CBDC) is potentially a “disruptive technology. That is why the regulator believes it is important to first ensure sound risk management.
Kazakhstan’s plans for digital currency first became known in November 2020. At that time, the republic’s regulator was included in the group of observers of the implementation of digital currency in China, Canada, Singapore and the European Union. It is noteworthy that earlier the republic announced its intention to handle 1% of the world’s cryptocurrency turnover. In addition, it is worth noting that the cryptocurrency market itself in Kazakhstan will remain illegal.