The pilot project for the digital tenge has been completed. It lasted a month. This pioneering project to digitize the national currency represents a major shift in the landscape for Kazakhstan's financial technologies systems. It is an important milestone. The project's success is a guide for future applications that use digital money.

The pilot program was used as a test field for various applications of the digital currency. Onay cards, originally designed for public transport payments, were used for many purposes. These included providing free meals for children in Almaty as well as for more complex financial transactions. Kazpost played a crucial role in these transactions as an intermediary. Four local banks also produced plastic cards with the global payment giants Visa & Mastercard. The cards allowed customers to purchase online or in person as well as withdraw money from ATMs. This capability extended beyond Kazakhstan's borders, showing the digital currency’s ability to be used in many different contexts.

Another test of the digital tenge is its use for international payments via SWIFT, and the issuance of stablecoins backed by the CBDC on platforms such as Binance and KASE. The digital tenge was also used for further experiments. The pilot also investigated gold tokenization, and smart contracts as a tax collection tool. A move-to earn application was also tested. Digital tenge is a flexible currency with many applications. It has the potential to revolutionize Kazakhstan’s financial system.

The National Bank of Kazakhstan (NPCK), along with the National Payment Corporation of Kazakhstan, have set lofty goals for 2024. Their efforts to promote financial integration will focus on the expansion of the network, the improvement and decentralization of finance apps, as well as the facilitation of off-line transactions. This is especially true in areas with limited internet access. Participation in international payment systems and initiatives will also be a priority. In addition, in order to meet their legislative and regulatory goals, they'll also emphasize improving the speed of processing the digital tenge as well as its safety. These improvements are expected to facilitate the further integration of digital tenge in global financial systems as well as its enhancement.

Binur Zhalenov confirmed, amidst these technological advancements, that the digital tenge would not be used to monitor users, thereby addressing any privacy concerns. This statement shows that Kazakhstan is committed to maintaining the safety and confidence of its users.

Image source: Shutterstock