Kazakhstan Expedites Digital Tenge Deployment to Enhance Budget Transparency
In a significant move towards modernizing its economy, Kazakhstan is set to fully embrace the digital tenge, a digital currency, in various sectors. The initiative, aimed at improving budget transparency, public spending control, and streamlining economic transactions, has already shown promising results in pilot projects.
Prime Minister Olzhas Bektenov has been instrumental in driving this digital revolution, having instructed the transfer of at least 100 major projects to the digital tenge format in the near future. He has also directed the development of a roadmap for the accelerated integration of the digital tenge into key sectors of the economy.
One of the key benefits of the digital tenge is its ability to ensure improved transparency and control over the targeted use of budget funds. This is particularly evident in the complete traceability of public infrastructure funding, such as road repairs, the Dostyk-Moiynty railway section, and the Taldykorgan-Usharal gas pipeline, which are now available online.
The digital tenge is also set to facilitate more secure and efficient payments in various transactions. It will be used in real estate and vehicle transactions, school meal programs, costly equipment purchases, and agricultural loans. The introduction of digital VAT, for instance, has already reduced the tax refund process from 75 days to just 5 working days.
Pilot projects have demonstrated the benefits of the technology in over ten areas, validating its practical value for the economy. The full-scale launch of the digital tenge platform is scheduled for December 2025, marking a major step in its integration within the Kazakh economy.
To support the expanded use of the digital currency, draft amendments introducing the concept of a digital account are being prepared. These amendments will provide a legal framework for the digital tenge, ensuring its legitimacy and security.
The Kazakh government recently held a meeting to discuss implementing the digital tenge, with Prime Minister Olzhas Bektenov stating that the digital tenge will ensure complete transparency and control over the targeted use of budget funds. A total of 257.5 billion digital tenge (US$496 million) have been put into circulation, signalling the government's commitment to this digital transformation.
With these developments, Kazakhstan's digital tenge promises significant gains in fiscal transparency, administrative efficiency, and digital transaction security. Its rapid pilot success and coming full rollout aim to entrench it deeply in the economy, supporting broader goals of digital modernization and economic transformation.
Given the ongoing digital revolution in Kazakhstan's economy, the Prime Minister Olzhas Bektenov aims to integrate the digital tenge, a digital currency, into key business sectors. This strategic move includes digital transactions in real estate, vehicle purchases, school meal programs, agricultural loans, and even secure VAT payments – all with the goal of improving transparency and technology in finance.
The growth of the digital tenge will be bolstered by draft amendments focusing on establishing digital accounts, creating a legal framework to ensure its legitimacy and security. This progressive step marks Kazakhstan's commitment to enhanced fiscal transparency, administrative efficiency, and digital transaction security within their economy.
