Kazakhstan has initiated a pilot project using its central bank digital currency （CBDC）, the digital tenge, to fund the construction of a rail line to China, aiming to enhance transparency and efficiency.
Points
- The project uses programmable digital tenge for targeted payments in the construction of a rail line to China.
- This marks the second phase of Kazakhstan’s CBDC introduction.
- The pilot aims to ensure transparency and proper fund allocation.
- Future expansions include various sectors like agriculture and social benefits.
Kazakhstan has embarked on an innovative pilot project to utilize its central bank digital currency （CBDC）, the digital tenge, for financing the construction of a rail line to China. This initiative represents the second phase of the country’s broader plan to integrate the CBDC into various economic activities, focusing on transparency and efficiency.
The National Bank of Kazakhstan （NBK） announced that the digital tenge would be used in a “marked” or programmable form to ensure that funds reach the intended recipients at the correct time. This approach is designed to enhance accountability throughout the supply chain, ensuring that payments are made only upon the completion of specific project milestones.
The rail line, extending between Moyynty in central Kazakhstan and Dostyk on the Chinese border, is a critical component of the Belt and Road Initiative, aimed at strengthening connectivity between China and Western markets. The project has received funding from Kazakhstan’s National Fund sovereign wealth fund, with the marked digital tenge facilitating efficient and transparent fund disbursement.
Cointelegraph
The pilot project’s success could pave the way for broader applications of the digital tenge in other sectors such as agriculture, construction, and social benefits. Halyk Bank of Kazakhstan has already participated in the project, and more banks are expected to join as the initiative expands.
解説
- CBDC Advantages: The use of programmable CBDCs can significantly enhance the transparency and efficiency of government expenditures.
- Strategic Connectivity: The rail line project is a strategic effort to improve Kazakhstan’s connectivity with China, bolstering trade routes.
- Future Applications: Successful implementation could lead to broader CBDC applications, promoting transparency in various public sector initiatives.