The National Payment Corporation: Kazakhstan’s Digital Financial Infrastructure
The National Bank of Kazakhstan (NBK) has announced the establishment of the National Payment Corporation (NPC) to oversee the implementation of digital financial infrastructure and the digital tenge. The NPC will also be responsible for supervising the National Payment Systems, Digital identifications, Interbank money clearing and transfers.
Efficiency and Security Enhancement
The restructuring aims to enhance the efficiency and security of Kazakhstan’s payment architecture while developing digital infrastructure services to accommodate new possibilities. The country has set a goal to introduce its Central Bank Digital Currency (CBDC), the digital tenge, before 2025. This move is seen as highly achievable and is driven by a desire to integrate traditional finance with decentralized finance, promote financial inclusion, and facilitate global payments.
Pilots and Partnerships
Kazakhstan has already initiated pilots with selected merchants and consumers in collaboration with Binance. Binance has demonstrated its commitment to the country by investing in local banks and opening a digital asset exchange there.
Kazakhstan’s Crypto Regime
Kazakhstan has emerged as a prominent digital asset hub in Central Asia, attracting crypto users and Bitcoin miners. However, recent developments such as the decline of FTX and increased power supply pressure have led to some policy changes.
Energy Usage Limitations for Miners
In response to a surge in crypto miners that strained the national power grid, Kazakhstan implemented a law limiting energy usage for miners. Miners can now only access power from the grid when there is a surplus, with licensed miners being given priority. Miners using renewable energy sources outside the grid are exempt from this regulation.
Tax Regime Adjustment
The new law also aims to adjust the tax regime for the crypto industry. Mining pools can only be used by registered firms, and miners are required to sell their crypto on exchanges operating within the Astana International Finance Center, a special economic zone.
CBDCs and Asset Custody
The recent push towards CBDCs in Kazakhstan is seen by some as a shift away from private cryptocurrencies following the fall of FTX. Financial authorities have also addressed asset custody concerns in light of these developments.
Hot Take: Kazakhstan’s Digital Transformation
Kazakhstan is taking significant steps towards digital transformation with the establishment of the National Payment Corporation and its plans for a CBDC. By integrating digital financial infrastructure and embracing new possibilities, Kazakhstan aims to enhance efficiency, security, and financial inclusion. The country’s crypto regime has attracted attention as it becomes a hub for digital assets in Central Asia. However, policy adjustments, such as limitations on energy usage for miners, highlight the need to balance growth with sustainability. The shift towards CBDCs demonstrates Kazakhstan’s commitment to innovation and aligning with global trends in finance.
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