The National Bank of the Republic of Kazakhstan (NBRK) will launch a public consultation for the proposed tenge digital currency, the official digital currency of the country’s Central Bank (CBDC).
As pointed out by the NBRK, the development of the digital tenges will adopt a two-tier structure in which Apex Bank provides the infrastructure for the CBDC rollout while financial market participants provide payment services.
The development of the digital Tenges according to the NBRK is intended to complement the Fiat currencyand not as a replacement.
“The national digital currency is a promising form of fund committed by the National Bank of the Republic of Kazakhstan and presented in digital form. The digital tender will be a legal tender, a measure of value and a store of value, ”said the bank in its public announcement.
In order to achieve a successful digital tender, the NBRK has highlighted the need to consult relevant stakeholders in cooperation with financial market participants, the expert community and international partners. The pilot begins by examining the risks and benefits associated with issuing a digital tenge in the nation.
“In order to make a decision on the topic of digital tenge, a comprehensive study of the benefits and risks must be carried out, defining the tasks performed by the digital currency, how it is issued and distributed, and the technology used. the impact on monetary policy, financial stability and the payments environment, ”the NBRK noted.
Kazakhstan has been a very optimistic nation when it comes to innovation in digital currencies and has adequately encouraged plans to attract up to $ 738 million in crypto-based investments within three years. The country also has a special crypto mining commitment that it plans to invest $ 700 million in.
The Digital Tenge Project is a development that models similar efforts by other advanced economies such as the US, UK, and China, to name a few. Kazakhstan does not have a set deadline for issuing CBDCs.
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