Central Bank of Kazakhstan Completes Second Phase CBDC Trial

• A prototype was created between July and December of 2021.
• January 2023, the rollout of the digital national currency will proceed in the final phase.

Officials at Kazakhstan’s central bank, the National Bank of Kazakhstan (NBK), say they’ve finished phase two of testing the infrastructure supporting the country’s central bank digital currency (CBDC). The whitepaper produced by the regulator. Presents trial findings and research on the necessity for a new form of national fiat, the tenge.

A prototype was created between July and December of 2021. To test the feasibility of the CBDC idea, as described in a statement cited by RBC Crypto. From January through December of 2022, the second phase saw the platform undergo further development. And testing with participants in the financial markets.

Banking on Digital Tenge

The bank claims that its tests have shown digital tenge to be a sustainable concept. Once implemented, the CBDC has the potential to expand access to financial services by, among other things, facilitating offline transactions and facilitating the introduction of novel goods and services. According to the results of a consumer study, the vast majority of people would actually utilize the currency.

Starting in January of 2023, the rollout of the digital national currency will proceed in its third and final phase. The team behind the project hopes to provide a product ready for widespread usage by businesses by the end of 2023. Phase four, set to conclude in December 2025, will see the NBK open its doors. To a wider range of participants and the introduction of new offerings.

Authorities in Kazakhstan, which has attracted miners from all over the world since China’s 2021 crackdown, are attempting to better control crypto-related activity. The lower house of parliament, the Mazhilis, enacted a specific measure in early December that covers cryptocurrency mining, trade, and taxes.