Kazakhstan Prepares for Launch of Digital Tenge
Kazakhstan is gearing up for the launch of its central bank digital currency (CBDC), the digital tenge, with a senior national bank executive conducting the first transaction on Wednesday. As blockchain technology becomes more widely adopted, central banks have been working to introduce their own CBDCs, focusing on ease of payments and cross-border transactions.
Kazakhstan Buckles up for Large-Scale Digital Tenge Developments
The Chairman of the National Payment Corporation of the National Bank of Kazakhstan, Binur Zhalenov, demonstrated the first digital tenge transaction through a debit card linked to a CBDC account. Kazakhstan has collaborated with payment giants Visa and Mastercard to support digital tenge through cards. Zhalenov spoke at the XI Congress of Kazakhstani financiers, stating that they will launch the digital tenge into retail circulation and are expecting large-scale development next year.
He also mentioned that next year, offline payments with digital tenge will be enabled, and the CBDC will be programmable. Essentially, this is smart money that can be used in smart contracts, innovative financial services, secure payments with digital assets, and much more.
While Kazakhstan is preparing for its CBDC rollout, it has taken strict action against non-licensed crypto businesses. Earlier this month, the nation blocked Coinbase’s website for alleged non-compliance with digital assets laws.
$213 Billion Market Size
Along with Kazakhstan, many other countries are working on adopting a central bank digital currency. The market size of CBDCs is expected to grow from around $100 million in 2023 to $213 billion by 2030.
Hot Take: Growing Global Interest in CBDCs
Countries like Kazakhstan are leading the way in adopting CBDCs as part of a global trend toward digitizing national currencies. This move promises increased convenience and security for users while streamlining cross-border transactions. With an estimated market size expected to grow significantly over the next decade, it’s clear that CBDCs are set to play a major role in shaping the future of finance worldwide.
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