Kazakhstan Grants Legal Status to Digital Tenge

Kazakhstan has officially granted the digital tenge the status of legal national currency, according to the National Bank of Kazakhstan.

The decision was formalized through the signing of the Law on Banks and Banking Activities, along with amendments to legislation on financial market regulation and bankruptcy, by President Kassym-Jomart Tokayev, The Caspian Post reports.

With these changes, the digital tenge is now recognized as a lawful means of payment across the country. The National Bank has been designated as the sole issuer of the digital currency, while transactions will be carried out via licensed financial market participants. The introduction of smart contracts and programmable features is expected to support the development of innovative financial services and improve transparency in the use of public funds.

The updated legal framework also reinforces the role of Kazakhstan’s National Digital Financial Infrastructure (NDFI). This infrastructure includes the National Payment System, interbank payment systems, the Digital Tenge platform, Open Banking solutions, and biometric identification systems. Together, these components aim to enhance banking efficiency, broaden the use of mobile and QR-based payments, and stimulate innovation within the financial sector.

At the same time, Kazakhstan has established a comprehensive regulatory framework governing the issuance of digital financial assets (DFAs) and the regulated circulation of unsecured cryptocurrencies. The framework outlines infrastructure requirements and clearly defines the regulatory authority of relevant institutions.

The National Bank of Kazakhstan began assessing the need for a digital tenge in 2022, working alongside market participants, experts, and international partners. Following the completion of research later that year, authorities decided to proceed with the digital tenge’s implementation in three stages. The first phase of the rollout was completed in 2023.