The National Bank of Kazakhstan had initiated the CBDC pilot project for the digital tenge and has now published a report describing its outcomes.
The National Bank of Kazakhstan had been deliberating on a central bank digital currency (CBDC) for the country. It recently initiated the CBDC pilot project for the digital tenge. After completing it, the central bank announced it to be successful. It has also released a report on the CBDC pilot project.
The central bank has also scheduled plans for the CBDC in 2024. It includes technical, regulatory and business improvements for the digital tenge. In the latest pilot, the bank explored various use cases, including paying for school lunches and tokenizing gold. Moreover, the central bank partnered with several private partners. The bank issued Visa and Mastercard CBDC cards to test purchases and payments.
“Further scaling up of this part will inevitably lead to the DT platform becoming an integral part of the payment system of Kazakhstan. Moreover, it will also provide additional opportunities for users: smart contracts, payment programmability, customizable anonymity, offline transactions and others,” said the bank regarding the interoperability of the CBDC.
The National Bank of Kazakhstan also used the CBDC for cross-border transfers and issuing stablecoins. It plans to scale the CBDC transactions for broader adoption across the country. A few industry experts also penned down messages for the project and claimed its potential for the future.
CBDCs are already a point of research in many countries at present. In Europe, the digital euro is also going through rounds of exploration and test cases. Central banks have also collaborated on the issue earlier to explore CBDCs and their use cases. The exercises have, in turn, led to benefits for the crypto industry. Various crypto firms have collaborated with central banks in the process.
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