Starting July 18, provisions establishing the digital tenge as a digital form of the national currency and recognizing it as legal tender will enter into force. The relevant provisions are set out in the law on issues concerning the regulation and development of the financial market, communications and bankruptcy.
The National Bank of Kazakhstan will have the exclusive authority to issue, put into circulation and redeem digital tenge. All digital tenge transactions will be processed through the National Bank’s digital tenge platform.
A digital account will be opened upon the customer’s application after the relevant agreement has been concluded. Banks, organizations authorized to conduct certain banking operations, the Central Securities Depository, the State Treasury Committee of the Ministry of Finance, other payment service providers and legal entities designated by the National Bank may become participants in the platform.
Using a digital account, users will be able to receive digital tenge, transfer it to other account holders, convert it into cash or non-cash funds and obtain information on their account balance and completed transactions.
The law also provides for the possibility of seizing digital tenge on the grounds established for funds held in bank accounts. In doing so, the specific features of smart contracts and the marked digital tenge must be taken into account.
Payments and transfers may only be made within the balance available in the digital account. Savings digital accounts may not be opened.
The digital tenge platform has been operating in Kazakhstan since 2023 as part of a phased rollout and pilot projects. The new provisions establish its legal status and the rules governing its circulation.
