Kazakhstan Plans Central Bank Digital Currency Pilot: Report
The bank said before a CBDC can be issued it is necessary to conduct a comprehensive study of the benefits and risks.
The Kazakhstan central bank said it is planning to pilot a central bank digital currency (CBDC).
- In an announcement Wednesday, the National Bank of the Republic of Kazakhstan said it plans to pilot a new legal tender dubbed the “digital tenge.”
- The tenge is the basic monetary unit in the country equal to 100 teins ($0.23).
- The bank said it will provide the infrastructure for the CBDCs but before issuance it needs to conduct a comprehensive study of the benefits and risks associated with a digital currency and the method used to issue and distribute it.
- The next step will be to conduct research around CBDCs with participants from the financial markets.
- Many other central banks around the world are already carrying out similar experiments.
- In April, Norges Bank announced it is moving ahead and will start testing technical solutions for a CBDC over the next two years.
- The Bank of Japan announced plans to begin phase one of experimenting with a CBDC by conducting experiments on the basic functions such as issuance, distribution, and redemption.
- In the meantime, China, which is further ahead in the CBDC race than other major powers, has been testing platforms on which the digital yuan can be freely traded with other fiat currencies.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.