Kazakhstan’s central bank is reportedly having plans to carry out examinations of the possible advantages and risks regarding the adoption of a state-backed digital currency.

Particularly, The National Bank of Kazakhstan (NBRK) reportedly rolled out a report, deep-diving into a digital tenge pilot initiative, and opened a public consultation regarding the possibility of a central bank digital currency release. 

Insights from the report reportedly showed that the digital tenge will function as a new form of money, with the NBRK in charge of the issuance, with a goal to allow for the “further development of the national payment system and reduce reliance on cash settlement using unique technical features.” 

The bank reportedly highlighted that the CBDC is not designed for operating as a replacement of either cash or cashless payments, but leaning more towards functioning as an alternative that can be used simultaneously with the current payment measures. 

The NBRK further shared that the digital tenge would make the payment market more competitive, reinforcing the stability of the financial system, together with jointly working on bringing up public trust in state-backed payments.

“The technology will meet the highest cybersecurity standards. […] The bank will pay special attention to consumer protection and the privacy of digital tenge users”. 

The bank will reportedly first carry out comprehensive research into both potential perks and risks associated with a CBDC. 

The NBRK, in partnership with financial market players and international partners, also aims to map out digital tenge’s objectives, issuance and distribution measures, the applied technology, and the possible effect on monetary policy, financial stability, and the payment ecosystem.