Kazakhstan is now using its digital currency, the digital tenge, to fund the construction of a rail line to China. The National Bank of Kazakhstan has launched a pilot project that will make sure the allocated funds reach the intended recipients at the right time.
The NBK announced that this project is the second stage in the rollout of the digital tenge. The programmable digital tenge is being used to build a section of the Dostyk-Moiynty railway.
According to the bank, this technology allows for “efficient spending and better control over funds.” During the pilot launch, funds allocated for the project were marked on the digital tenge platform.
These marked digital tenges are only paid to organizations that fulfill all necessary obligations. The payment process includes the entire supply chain, so that all suppliers and contractors receive their due payments.
The bank stated that this marking technology helps reduce the risks of fund misappropriation and ensures transparency and efficiency in public spending.
This pilot project involves several major entities, including JSC Samruk-Kazyna, JSC National Company Kazakhstan Temir Zholy, JSC Kazpost, and JSC Halyk Bank of Kazakhstan.
The National Bank of Kazakhstan plans to expand the use of the digital tenge platform. They want to include more market participants and use the platform for other projects funded by the National Fund.
This expansion will involve additional reference sources and information systems for marking the digital tenge. Alongside the government and the Anti-Corruption Agency of Kazakhstan, the bank is implementing several pilot projects.
These projects target state spending in areas like agriculture, construction, and digitalization of state support measures. They also plan to digitize tax administration and facilitate cross-border settlements in national digital currencies.
The results of the second phase of the digital tenge introduction will be presented in a final report at the end of 2024.
