National Payment Corporation to Spearhead Digital Tenge Project
In a groundbreaking move, the National Bank of the Republic of Kazakhstan (NBK) has announced the formation of a specialized body — the National Payment Corporation (NPC) — tasked with steering the development and deployment of the central bank digital currency (CBDC), known as the digital tenge.
Paving the Way for Digital Infrastructure
The NPC emerges from the foundations of the erstwhile Kazakh Center for Interbank Payments. Its mission is broad, encompassing the oversight of the national payment system — a mandate that extends to supervising interbank clearing services, facilitating money transfers, and orchestrating digital identification processes.
Central to its role will be fostering a “digital financial infrastructure”, a responsibility that underscores the pivotal part it is to play in bringing the digital tenge to fruition.
From Conception to Reality: The Journey of Digital Tenge
The groundwork for the digital tenge was laid in February 2023, with a vision that foregrounds a synergy between traditional finance and decentralized finance (DeFi). The strategic goal, as delineated by NBK deputy governor Berik Sholpankupov, is to leverage this collaboration to broaden financial inclusion and enhance international trade dynamics.
With a 2025 deadline on the horizon, the initiative is committed to integrating the realms of traditional finance with cutting-edge DeFi innovations.
Binance Joins Hands with NPC in this Historic Venture
A milestone in this ambitious journey was the partnering with Binance, the world’s leading crypto exchange platform. Leveraging Binance’s technical prowess through its BNB chain, the pilot phase of the project is unfolding in a controlled environment involving real consumers and merchants.
This collaboration took a significant stride in June when Binance partnered with the local Freedom Finance Bank to facilitate users in transferring fiat funds to their accounts on the platform, signaling a fortified alliance and a firm step towards realizing the digital tenge dream.
Looking Ahead
As Kazakhstan stands on the cusp of a digital revolution, the path charted by the NPC promises to redefine the financial landscape, knitting together the strengths of traditional and decentralized financial systems. The eyes of the world are trained on Kazakhstan, as it embarks on this journey to foster financial inclusivity and revitalize international trade through the digital tenge initiative.
