The National Bank of Kazakhstan (NBK) and Payment and Financial Technologies Development Center of the NBK (PFTDC) have released the report ‘Decision Making Model for Digital Tenge Implementation’. Based on the results of the study obtained with the use of this model, a final decision will be made by the end of 2022 to introduce the Central Bank digital currency in Kazakhstan, Kazinform cites the press service of the Bank.
The ultimate effect for consumers of payment services will be the priority in making a decision to implementation of Digital Tenge. The NBK and PFTDC model takes into account the analytical tools recommended by international organizations (WEF, G7 Summit, IMF) as well as the approaches of foreign authorities. The Model also provides for studies to assess the technical feasibility of Digital Tenge, potential economic benefits and costs, regulatory capabilities of the system, and the potential for ecosystem development.
Technological experiments, economic modeling, and design sessions with stakeholders are provided as the analysis tools. An end-to-end test of Digital Tenge technological platform with market participants and consumers is scheduled for the 4th Quarter of 2022.
In order to objectively interpret the results of the study, Advisory Board of the Digital Tenge project was established bringing together independent international experts and employees of international financial organizations. An important success factor in development of the project is also creation of an ecosystem of Digital Tenge with the financial market participants. For these purposes, a Digital Tenge Hub, a collaborative platform, was created for the market participants, infrastructure players, and international partners.
The introduction of Digital Tenge will increase financial inclusion, including through an option to make offline payments. The Digital Tenge infrastructure will become an extra tool for participants of the financial market and government agencies, which will provide an opportunity to create innovative services based on smart contract technology. In the future, the introduction of Digital Tenge will also enhance cross-border payments.
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