Points
- Kazakhstan uses its digital tenge CBDC to pay for the construction of a rail line to China.
- The project marks the second phase of the digital tenge introduction.
- The CBDC ensures transparency, targeted use, and efficiency in funding.
Kazakhstan has launched a pilot project using its digital tenge central bank digital currency （CBDC） to fund the construction of a rail line to China. This project represents the beginning of the second phase of the digital tenge introduction, aimed at ensuring transparency, targeted use, and efficiency in funding.
Markingwasimplementedthroughoutthesupplychainusingexistinginterfacesofmarketparticipantsintheusualformat.Themoneywasdisburseduponcompletionofthework,ensuringthatthefundsreachedtheintendedrecipientsattherighttime.
###GovernmentSpendingwithCBDC
Duringthepilotlaunchofthedigitaltengeplatform,thefundsallocatedtofinancetheprojectweremarkedtoensuretheywereusedonlybyorganizationsthathadfullymettheirobligations.ThemarkeddigitaltengewasusedtoextendtheraillinebetweenMoyyntyincentralKazakhstanandDostykontheChineseborder,partoftheBeltandRoadtransitcorridorlinkingChinawithWesternmarkets.
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Extending CBDC Use
Kazakhstan’s government and the state Anti-Corruption Agency plan to extend the use of marked digital tenge to targeted expenditures in agriculture, construction, and social benefits. Halyk Bank of Kazakhstan participated in the project, and other banks will be included as it expands.
Future CBDC Projects
The National Bank of Kazakhstan （NBK） and the People’s Bank of China signed a memorandum of understanding on joint CBDC research on July 10. Separate projects involving tax administration, cross-border payments, and settlements in digital assets are also planned.
Conclusion
Kazakhstan’s use of a programmable CBDC for infrastructure projects highlights the potential of digital currencies to ensure transparency and efficiency in government spending. The pilot project sets a precedent for future applications of CBDC in various sectors.
解説
- Programmable CBDC: Using a programmable CBDC ensures that funds are used as intended, preventing misallocation and enhancing transparency.
- Belt and Road Initiative: The rail line extension is part of a broader effort to enhance connectivity between China and Western markets, demonstrating the strategic importance of the project.
- Future Applications: The success of the pilot project opens the door for further use of CBDC in other sectors, such as agriculture and social benefits, promoting greater efficiency and accountability in government spending.