Kazakhstan's central bank is considering the issuance of a central bank digital currency (CBDC).
A report published by the National Bank of Kazakhstan on Wednesday outlines plans to launch a pilot project for a digital tenge. The pilot would see a two-tier structure, with the National Bank as the primary issuer, and commercial market participants providing various financial services involving the CBDC.
At this point in time, the Kazakh central bank is in the early stages of research into the benefits and challenges of a digital tenge, which it plans to carry out in cooperation with financial service providers, "the expert community," and international partners.
The areas of focus for the National Bank's research include the development of a currency that "should not affect monetary or financial stability" and "should complement existing forms of money." It further names safety, scalability, and confidentiality among the priorities for such a digital currency.
The National Bank has opened a public consultation surrounding the potential pilot project.
The release of the central bank's report follow's an announcement first reported on in July 2020, when Kazakhstan's plans to consider a national digital currency were first revealed.