Kazakhstan is exploring the feasibility of a central bank digital currency (CBDC), but it has yet to decide on the need for a digital tenge. The country\u2019s central bank has been developing CBDC infrastructure. However, according to the governor, it will determine whether to launch the digital currency by December 2022.<\/p>\n
Kazakhstan has burst onto the scene as one of the world\u2019s largest block reward mining hubs, ranking only behind the\u00a0first-placed United States.\u00a0However, it hasn\u2019t been as aggressive with its CBDC. The National Bank of Kazakhstan only began exploring the feasibility of a CBDC mid this year, announcing plans to pilot its prototype of a digital tenge in May.<\/p>\n
Governor Erbolat Dossayev recently revealed that the bank has been working on developing a prototype of a digital tenge platform this year, and it has finally completed it. As local outlet Kazinform\u00a0reports, Governor Dossayev announced that the central bank has been working with local financial firms and select international partners on the project.<\/p>\n
Dossayev acknowledged that CBDCs are likely to play a key role in the financial industry in the future. Most countries have either launched pilots or are exploring the viability of a sovereign digital currency, and Kazakhstan doesn\u2019t want to lag behind.\u00a0<\/p>\n
Some countries like China, whose\u00a0block reward mining crackdown\u00a0played a key role in making Kazakhstan the new hub, are at advanced stages in their CBDC development. As recently reported, China\u2019s central bank is now working to integrate the digital yuan into Hong Kong\u2019s Faster Payments System. This will allow visitors from mainland China to spend and recharge their digital yuan wallets through Hong Kong banks and electronic payment systems.<\/p>\n
While Kazakhstan recognizes the role that CBDCs could play in the future, Governor Dossayev revealed that the central bank has yet to decide whether to launch a digital tenge. He expects the decision to be made before December 2022.<\/p>\n
Watch: CoinGeek New York panel, Media Influence: How News Reporting Affects the Digital Asset Market<\/p>\n