- The National Bank of Kazakhstan has established the National Payment Corporation (NPC) to lead the development and implementation of the country’s (CBDC) digital tenge.
- The NPC will oversee the national payment system, interbank clearing services, money transfers, digital identification, and the development of digital financial infrastructure, including the digital tenge.
- The digital tenge development began in February 2023, with a launch deadline set for 2025.
The National Bank of Kazakhstan (NBK) has announced the establishment of the National Payment Corporation (NPC), an organization tasked with implementing digital financial infrastructure and the digital tenge.
As stated in the official press release issued on September 15, the NPC will oversee efforts to roll out the country’s Central Bank Digital Currency (CBDC) digital tenge.
The new agency is a restructuring of the Kazakhstan Center for Interbank Settlements, and it will oversee National Payment Systems, Digital Identifications, Interbank Money Clearing, and Transfers.
“The National Bank of Kazakhstan (NBK) informs about the creation of the National Payment Corporation (hereinafter referred to as the Corporation, NPK JSC) through the reorganization of the RSE “Kazakhstan Center for Interbank Settlements” (KISC).”
According to the press release, the restructuring will increase the efficiency and security of the country’s payment architecture and build digital infrastructure services to incorporate new possibilities.
Kazakhstan began work toward the CBDC in February, with a scheduled implementation date of 2025, a move widely regarded as highly possible.
The NBK identified a need for synergy between traditional and decentralized finance (DeFi), financial inclusion across multiple demographics and businesses, and worldwide payments at the time.
The country has begun pilots with select merchants and consumers in collaboration with Binance. Binance has announced investments in the country, including the establishment of a digital asset exchange and relationships with local banks.
Kazakhstan Cryptocurrency Regime
Kazakhstan was recognized last year for becoming a major digital asset center in Central Asia as the country saw an increase in crypto users and Bitcoin (BTC) miners.
Following China’s mining ban, Kazakhstan, Texas, and other states became a new mining hotspot. Recent events, such as the decline of FTX and increased power supply pressure, may have resulted in minor policy adjustments.
Following a massive surge of new miners that contributed 1.5GW to the national grid, the country’s President approved legislation in February to limit energy usage for crypto miners.
Unlike the previous structure, the new law permits crypto miners to use grid electricity only when there is a surplus, which will only be given to licensed miners. Miners that generate their power from renewable sources not connected to the national grid are exempted from the law.
The law also seeks to improve the industry’s tax structure by allowing registered enterprises to use mining pools and requiring miners to sell their cryptocurrency to exchanges registered and operating in a special economic zone, the Astana International Finance Center.
Following the fall of FTX, financial regulators have also issued statements on asset custody, with some analysts seeing the recent drive to CBDCs as a shift away from private cryptocurrencies.
