The National Bank of the Republic of Kazakhstan has announced the successful launch of a pilot project aimed at using the digital tenge platform (DT) for budget expenditures. This initiative, financed by the National Fund, marks the second phase in the introduction of Kazakhstan’s national digital currency, focusing on the programmability of digital tenge.
As part of this pilot project, programmable digital tenge is being deployed to finance the construction of a section of the Dostyk-Moiynty railway. The technology behind programmable digital tenge enables fund owners to independently control and ensure the efficient spending of allocated funds.
During the pilot launch, funds earmarked for the project were marked on the digital tenge platform. These marked digital tenge can only be disbursed to organisations that have fully met their obligations. This marking system ensures that settlements in digital tenge are conducted throughout the supply chain, reaching final suppliers and contractors. Moreover, access to digital tenge accounts for all consumers is provided through existing market participant interfaces in the usual format.
This marking technology aims to mitigate the risks of misappropriation of allocated funds, enhancing the transparency and efficiency of public spending.
The pilot project is a collaborative effort involving JSC Samruk-Kazyna, JSC National Company Kazakhstan Temir Zholy, JSC Kazpost, and JSC Halyk Bank of Kazakhstan.
As the pilot project progresses, plans include expanding the sources of reference information systems for marking digital tenge, increasing the number of market participants, particularly second-tier banks, and applying the platform to other projects funded by the National Fund.
Additionally, in collaboration with the Government of the Republic of Kazakhstan and the Anti-Corruption Agency of the Republic of Kazakhstan, several pilot projects are being implemented to target state spending of budget funds in agriculture, construction, and digitalisation of state support measures. Future initiatives also involve the digitalisation of tax administration, cross-border settlements in national digital currencies, and settlements in the field of digital assets.
The outcomes of the second phase of the digital tenge introduction will be detailed in a final report (blueprint paper) scheduled for release at the end of 2024.
