Kazakhstan’s NPC Officially Rolls Out State-backed CBDC in Partnership With Visa and Mastercard
Central-Asia Country Kazakhstan has officially launched the digital tenge project, a central bank digital currency (CBDC) designed to simplify payments and drive economic growth.
According to a local news outlet report on November 15, Binur Zhalenov, CEO of the Kazakhstan National Bank’s National Payment Corporation (NPC), conducted the first-ever digital tenge transaction at the 11th Congress of Financiers in Almaty.
#Kazakhstan has officially launched the digital tenge, with the chairman of the National Payment Corporation making the first transaction with the #CBDC.
— Moby Media (@mobymedia) November 15, 2023
Zhalenov explained that the new CBDC represents Kazakhstan’s third official fiat option, complementing its physical cash and non-cash solutions. He also revealed that the nation collaborated with Visa and Mastercard, as well as local banks, to integrate the CBDC into existing payment cards.
Residents can now seamlessly use the new CBDC for global transactions through Apple Pay, Samsung Pay, and other supported options. According to the CEO, the initial phase of the digital solution will focus on retail circulation, followed by extensive development in the coming year.
The digital currency is pegged to the same value and legal status as the Kazakhstan Tenge (KZT), the official fiat currency of the Central Asian nation. It will operate on a blockchain or centralized ledger, providing electronic transactions, instant settlements, and potential improvements in the country’s monetary policy.
Responding to potential concerns about safety, Zhalenov stated that the CBDC is secured by the obligations of the state represented by the National Bank. This guarantees the safety of residents’ funds and businesses.
He also emphasized
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