Image: Cointelegraph

Kazakhstan officials revealed the nation’s digital currency development plan to experts from Russia and China at “2020 Astana Online Financial Day,” according to a Chinese Ministry of Commerce statement on July 1.

The Central Asian country plans to double its digital currency mining investment by the end of this year, and is continuing to develop its central bank digital currency (CBDC).

According to the ministry, Kazakhstan’s digital currency mining project attracted 82.6 million tenge (US$20 million). The scale of this investment will increase by 80 million tenge in 2020.

Blockchain development

The development of blockchain technology gives digital currency new practical significance, says Kazakhstan. 

In May 2020, Mu Xin, a senior Kazakh government adviser, proposed the introduction of blockchain technology and the digital tenge. This would aim to combat corruption and ensure transparency in the allocation of state budget funds. In June, Kazakhstan adopted a development outline for blockchain and digital technology. 

At present, the Central Bank of Kazakhstan is demonstrating the feasibility of introducing the CBDC tenge. Zarenov, adviser to the president of the Central Bank of Kazakhstan, emphasized: “The main task of the central bank is to maintain inflation targets and financial market stability, and the digital currency solution is the second priority. The key is to ensure that the design of a digital currency system is consistent with the objectives of monetary policy.”

CBDC legal framework

Kariyev, development overseer of Astana International Financial Center (AIFC), has stated that AIFC intends to offer assistance for a trial and establish a legitimate basis for Kazakhstan to roll out its digital currency. The AIFC’s covenant includes crypto categorizations, digital wallets and smart contracts, Cointrust reported.

Kazakhstan earlier created a way to store cryptocurrency and distribute it to normalize the procedures via a proficient platform.