Kazakhstan's Digital Tenge drive: A New Era for Transparency and Efficiency
Electronic Tenge Campaign Pushed by Kazakhstan for Greater Accountability and Streamlined Budget Oversight
Stepping into a digital future, Kazakh Prime Minister Olzhas Bektenov led a key discussion on April 3, revolving around the implementation of the digital tenge and strategies for monitoring budget fund usage, according to the Prime Minister's press service.
Bektenov emphasized that the digital tenge initiative represents a game-changer for Kazakhstan's financial systems, promoting transparency in government spending. A photo courtesy of the Prime Minister's press service was included.
The meeting focused on the current phase and future prospects of developing Kazakhstan's digital financial infrastructure, with a particular emphasis on the traceability and efficiency of public spending through the digital tenge.
Binur Zhalenov, advisor to the National Bank chair, spoke on the crucial components of the digital infrastructure, such as the interbank payment card system, Open API, and the Anti-Fraud Center. In an interview with The Astana Times YouTube channel, Zhalenov shared insights on how the digital tenge could revolutionize the way money flows.
The National Bank's systems currently handle an impressive 90% of the country's total payment turnover, with nearly 30 million digital biometric identification requests. Illicit transactions worth 2 billion tenge (US$3.9 million) have been thwarted, and over 36,000 fraud cases have been uncovered.
Presently, 108 organizations, including second-tier banks, major payment entities, and microfinance firms, are associated with the digital infrastructure. A service for interbank payments via QR with second-tier banks is scheduled to launch in July.
A pilot project utilizing the digital tenge for ensuring transparency in public spending has been implemented. To date, around 250 billion digital tenge have been issued, with unique digital tags enabling the tracking of funds from allocation to full expenditure. This approach has proven particularly effective in sector's prone to corruption.
In addition, Kazakhstan launched a digital VAT pilot project based on the digital tenge, designed to streamline VAT administration and accelerate refunds. Bektenov underscored the importance of scaling up the national digital financial infrastructure and expanding the usage of digital tenge. The implementation of digital tenge is crucial for expediting financing processes and enhancing transparency in the allocation of budget funds.
Reiterating the vital role of the digital tenge, Bektenov urged entrepreneurs dealing with public funds to disclose their supply chain and spending details openly. Leveraging digital technologies to revamp financial systems and boost transparency is paramount for championing accountability and fostering a corruption-free environment within Kazakhstan's government.
In essence, the digital tenge initiative carries transformative potential, harnessing modern digital technologies to streamline financial transactions, promote efficiency, and bolster transparency, resulting in a more secure, digital, and corruption-free future for Kazakhstan.
Enrichment Data:
- Overall: The digital tenge, Kazakhstan's central bank digital currency, is designed to revolutionize payment systems and enhance transparency in government spending.
- Digital Infrastructure: The National Bank's systems processes 90% of the country's total payment turnover and leverage digital tags associated with the digital tenge to track funds, improving transparency in public spending
- Anti-Fraud Measures: The Anti-Fraud Center has blocked over 2 billion tenge (US$3.9 million) in illicit transactions and identified over 36,000 fraud cases
- Connected Organizations: Around 108 organizations, including banks and microfinance firms, are connected to the digital infrastructure
- Future Plans: In July, a service for interbank payments via QR with second-tier banks is planned, as well as the development of Open Banking and Open API systems to improve efficiency in financial transactions
- Impact: The implementation of the digital tenge is expected to increase efficiency and transparency in financial transactions, reduce corruption risks, and improve the management and security of public funds
- The digital tenge, Kazakhstan's central bank digital currency, is expected to launch in July, which will include a service for interbank payments via QR with second-tier banks.
- The National Bank's digital financial infrastructure is currently handling 90% of the country's total payment turnover, and it utilizes digital tags associated with the digital tenge to enhance traceability and efficiency in public spending.
- Binur Zhalenov, an advisor to the National Bank chair, highlighted the importance of Open Banking and Open API systems, as they could significantly enhance the efficiency of financial transactions.
- Leveraging the digital tenge, Kazakhstan has implemented a pilot project for ensuring transparency in public spending, issuing around 250 billion digital tenge with unique digital tags that enable full tracing from allocation to expenditure, especially in sectors prone to corruption.
