Kazakhstan to create digital tenge

Digital Tenge will increase the availability and quality of banking services, as well as increase competition in the payment system. And Kazakh residents will only benefit from it, Chairperson of the Eurasian Development Bank Nikolai Podguzov said. In the future, Kazakh population will be more confident in storing and investing electronic money, he added.

What distinguishes them from cryptocurrencies? First of all, it is the fact that their issuer is the National Bank. It guarantees reliability, experts say. Thus, a new type of money may well become another form of national currency, along with cash and non-cash types of payments. However, they are being introduced in stages around the world due to some potential threats. They require careful preparation and study, and it is the financial regulator who should lead the whole process, Podguzov said.

“The risks for the Kazakh financial market, as well as for other markets, are pretty similar. It’s a threat to the traditional banking system, a liquidity outflow from the banking system. These are also technological risks in the field of cybersecurity, because this is a completely different design of the payment system. Of course, the risks are high, so we need to do the proper preparations and assessment,” said Nikolai Podguzov, Chairperson of the Eurasian Development Bank.

Translation by Assem Zhanmukhanova

Editing by Galiya Khassenkhanova