Kazakhstan confirms the possibility of implementing CBDCs

Kazakhstan announced its result on the hypothetical pilot program on Central Bank Digital Currency (CBDCs) and confirmed that they will introduce CBDCs to advance the payment system. 

After the ban of crypto mining and related services by China, Kazakhstan took advantage over other countries and welcomed the huge numbers of crypto mining firms. However at this time, Kazakhstan is worried about the future electrical energy needs but besides this, they are planning to introduce nuclear energy power plants to complete all the needs of the country for every industry. 

Past reports on Kazakhstan confirmed that Kazakhstan is a crypto-friendly country in the world and also officials of Kazakhstan are ready to adopt blockchain innovation with the introduction of Central Bank Digital Currency (CBDCs). 

According to reports, the National Bank of Kazakhstan (NBK) said that the Central Bank is sure about the implementation of CBDCs with the use of distributed ledger technology. And also plans are a better fit to bring the use of CBDCs for the citizens of Kazakhstan. Citizens will also be allowed to pay in offline mode and also to use the programmability. 

In the whole provided details, it was confirmed by the NBK that Digital Tenge ( CBDCs) has been tested hypothetically that how it can be used between second-tier banks and for cross-border transactions under the monetary policies. 

The report of the Central Bank also suggested that the initiative of CBDCs will involve the participation of the players for different scenarios. 

Report officially read: 

“The NBK of the Republic of Kazakhstan will ensure the development of a final model to decide on the introduction of the (digital tenge) and perform a presentation of interim results of the study and discussion with all stakeholders in July 2022”

However, at present, NBK confirmed their idea of CBDCs but they are still sceptical about it and the final decision will be introduced by the Central Bank and other officials in December 2022. That means it will take around a year for more detailed research and study to ensure that Digital Tenge will perform much better than the traditional payment system without any risk.

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