Kazakhstan has made a name for itself in the crypto world as a safe haven for crypto miners fleeing China’s crackdowns. However, the country is also active in other areas of the fintech economy.
The National Bank of Kazakhstan recently published a report on the outcomes of its CBDC pilot.
The Digital Tenge is a CBDC built on R3’s Corda platform. Other countries, including Sweden and France, have used the same platform for CBDC testing.
According to the report, the major findings of the CBDC pilot were as follows: 1. confirming the feasibility of establishing a retail CBDC 2. CBDC process testing 3. experimenting with CBDC applications 4. bringing together various stakeholders
According to the report,
“Offline payments, programmability at the token level, and the system’s flexibility in terms of the balance between transaction anonymity and AML/CFT (customizable anonymity) were all tested as potential CBDC benefits to citizens and commercial organizations.”
The CBDC was also discussed with the US Diplomatic Mission, the IMF, the BIS, and other sector stakeholders, according to the report.
However, the results of the Digital Tenge pilot do not guarantee the establishment of a CBDC. According to the report, a formal decision on issuing the Digital Tenge will be made in December of next year.
Meanwhile, the National Bank of Kazakhstan stated that one of the primary reasons for investigating a CBDC was to improve financial inclusion and accessibility. In this regard, the report stated,
“The results presented by DTCC, Accenture, Digital Asset, and r3 show that Corda can handle over 100 million transactions per day […].” We also discovered that the ledger’s ‘throughput efficiency’ (the maximum number of requests for a given period of time) with four Corda nodes can support 300 transactions per second […].”
Naturally, many future users are concerned about their privacy. The report emphasized that other countries were also using the Corda platform’s privacy features, but that networks sharing information could be a risk factor.
Take Advantage of
The Digital Tenge pilot results arrive at a critical juncture in Kazakhstan’s history. The country’s leadership has begun to highlight the difficulties of power shortages as a result of the surge in Bitcoin miners. In fact, President Kassym-Jomart Tokayev was quoted as saying that it was time to think about building a nuclear power plant.