Kazakhstan makes history: Digital tenge debuts in first-ever retail transaction during limited pilot phase
On November 15th, Kazakhstan launched its CBDC, the digital tenge, in a pilot phase with real users, in collaboration with second-tier banks.
emerging tech
Highlights
- Recently, Kazakhstan launched its CBDC, the digital tenge, in a controlled environment with real users
- To support the integration of the digital tenge on cards, Kazakhstan has partnered with payment giants Visa and Mastercard
Kazakhstan officially unveiled its central bank digital currency (CBDC), the digital tenge, on 15 November, marking a historic moment for the Central Asian nation. The National Bank of Kazakhstan, in collaboration with second-tier banks and their clients, initiated the pilot phase of the digital currency within a limited environment involving real users.
First retail transaction & integration with payment giants
Binur Zhalenov, Chairman of Kazakhstan’s National Payment Corporation (NPC), conducted the inaugural retail transaction using the digital tenge. This transaction, facilitated through a debit card linked to the CBDC account, signifies a significant milestone in the country's digital currency journey.
To support the integration of the digital tenge on cards, Kazakhstan has partnered with payment giants Visa and Mastercard. Zhalenov expressed optimism about the large-scale development of the platform in collaboration with financial market participants, anticipating the emergence of innovative services.
Versatility & future development
Zhalenov highlighted the digital tenge's versatility, emphasizing its applications in smart contracts, financial services, and digital asset transactions. The upcoming focus of CBDC development includes enabling offline payments in 2024 and integrating cross-border trade by 2025.
The complete rollout of the digital tenge is slated for conclusion by the end of 2025, promising expanded services, application scenarios, and increased involvement of platform participants.
Global CBDC trends
As multiple countries gear up to launch digitised versions of their legal tenders, research suggests that the value in CBDC payments is expected to reach $213 billion annually by 2030, a substantial increase from $100 million in 2023.
A study by Juniper Research indicates a shift in the transaction landscape, with an estimated 92% of the total CBDC value paid domestically by 2030. Other countries, such as Brazil and the European Union, are also advancing their CBDC initiatives, with Brazil expecting to introduce its digital currency in 2024 and the Digital Euro projected to be finalised by the end of 2025.
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