Kazakhstan officials revealed the nation’s digital currency development plan to experts from Russia and China at “2020 Astana Online Financial Day”. According to the China Ministry of Commerce on July 1, Kazakhstan plans to double its digital currency mining investment by the end of this year, and continues to develop its central bank digital currency.
According to the report, Kazakhstan’s digital currency mining project attracted 82.6 million Tenge, which is about 20 million USD. The scale of this investment will increase by 80 million Tenge in 2020.
Blockchain and CBDC a work in progress
The development of blockchain technology gives digital currency new practical significance, says Kazakhstan.
In May 2020, Mu Xin, Kazakh President’s adviser proposed the introduction of blockchain technology and the digital Tenge. This would aim to combat corruption and ensure transparency in the allocation of state budget funds. In June, Kazakhstan adopted a development outline for blockchain and digital technology.
At present, the Central Bank of Kazakhstan is demonstrating the feasibility of introducing the CBDC Tenge. Zarenov, adviser to the president of the Central Bank of Kazakhstan, emphasised:
“The main task of the central bank is to maintain inflation targets and financial market stability, and the digital currency solution is the second priority. The key is to ensure that the design of a digital currency system is consistent with the objectives of monetary policy.”
Legal framework for its CBDC
Kariyev, development manager of Astana International Financial Center, or AIFC, said AIFC is willing to provide test support and formulate a legal basis for Kazakhstan to introduce its digital currency. The AIFC’s protocol includes cryptocurrency classifications, smart contract, digital wallet and other common cryptocurrency market terms.
Kazakhstan previously developed a method of cryptocurrency storage and circulation meant to standardize these processes through a professional platform.