BAKU, Azerbaijan, July 8. The National Bank of the Republic of Kazakhstan (NBK) has developed a decision-making model for introducing the Digital Tenge, Trend reports via the NBK.
The final decision on implementing the digital national currency will be made by the end of 2022 based on the study results.
The ultimate effect for consumers of payment services will be the priority in launching the Digital Tenge. The NBK and PFTDC (Payment and Financial Technologies DevelopmentCenter) model consider the analytical tools recommended by international organizations, as well as the approaches of foreign authorities.
Moreover, the model envisages 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 the Digital Tenge technological platform with market participants and consumers is scheduled for the fourth quarter of 2022.
The Advisory Board of the Digital Tenge project bringing together independent international experts and employees of international financial organizations was established to interpret the study results. Another important success factor in the development of the project is the establishment of the Digital Tenge ecosystem with the financial market participants. For these purposes, a Digital Tenge Hub was created for the market participants, infrastructure players, and international partners.
The introduction of Digital Tenge will improve financial availability, including making 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.