Kazakhstan Set to Launch CBDC as Former Soviet Nations Enter Digital Fiat Space
Kazakhstan is preparing to launch its own central bank digital currency (CBDC), following in the footsteps of other former Soviet nations. The country’s central bank has presented a proposal for a digital version of the fiat tenge to the Supreme Audit Chamber, indicating its intention to release a coin. This comes as Russia and Belarus, traditional allies of Kazakhstan, have started piloting their own digital ruble and digital fiat, respectively. The Kazakh bank clarified that the digital tenge would not replace cash or non-cash payments and would be available offline. Its goal is to modernize and develop payment systems, with a three-stage launch planned by 2025.
Key Points:
- Kazakhstan’s central bank has proposed a digital version of the fiat tenge to the Supreme Audit Chamber, signaling its intent to release a CBDC.
- The announcement coincided with Russia and Belarus piloting their own digital ruble and digital fiat, respectively.
- The digital tenge is not intended to replace existing forms of payment and will be available offline, similar to the digital ruble.
- The central bank aims to modernize and develop payment systems through the CBDC launch, with a target completion date of 2025.
- Kazakhstan has become a major player in crypto mining but has also faced challenges, such as power shortages and increased electricity charges for miners.
Hot Take:
Kazakhstan’s move towards launching a CBDC reflects the growing trend among former Soviet nations to explore digital fiat currencies. By following in the footsteps of its neighbors, Kazakhstan aims to modernize its payment systems and keep pace with the evolving financial landscape. While the country has embraced crypto mining, it has also faced challenges, such as power shortages and taxation issues. The introduction of a CBDC could provide a regulated and efficient alternative, contributing to the country’s economic development and integration into the digital economy.
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