Digital Tenge Receives Official Legal Status in Kazakhstan

Beginning July 18, the digital tenge will officially become a recognized digital form of Kazakhstan’s national currency. Amendments to the country’s legislation grant the National Bank of Kazakhstan the exclusive authority to issue and circulate the digital currency, establishing a comprehensive legal framework for its wider use across the financial system. Unlike many central bank digital currency (CBDC) projects around the world, which remain at the pilot or experimental stage, Kazakhstan has already moved beyond testing into practical implementation. Rather than replacing cash or bank cards, the digital tenge has been designed primarily to improve transparency in public spending, government procurement, and the monitoring of budget expenditures. By the beginning of 2026, approximately 336.6 billion tenge, or about $640 million, worth of digital tenge had been issued, and the technology had been deployed in more than 100 pilot projects. These include public procurement, the management of National Fund resources, tax administration, government subsidies, and infrastructure financing. Programmable payment technology enables authorities to track the movement of public funds almost in real time while restricting spending according to predefined conditions. The practical use of the digital tenge continues to expand. According to the National Payment Corporation of Kazakhstan, the platform was used throughout 2025 in projects involving infrastructure financing, public procurement, business support programs, and other government initiatives. The experience gained from these projects has laid the foundation for the next stage of the digital tenge’s development. Kazakhstan remains the regional leader in the development of a central bank digital currency. Elsewhere in Central Asia, governments have concentrated on digital payments and the regulation of digital assets. As previously reported by The Times of Central Asia, Kyrgyzstan is promoting the gold-backed USDKG stablecoin for cross-border transactions, while other countries in the region have yet to move toward the practical implementation of national CBDCs. The International Monetary Fund believes the next phase of the project will depend less on further technological development than on strengthening regulation, enhancing cybersecurity, and integrating the digital tenge into Kazakhstan’s existing financial architecture. According to the IMF, these factors will determine whether the project can be successfully scaled nationwide.

Kazakhstan to Establish Committee to Regulate Digital Asset Market

Kazakhstan will establish a dedicated committee under the National Bank to oversee the development, regulation, and supervision of the country’s digital asset market, and expand oversight of the national payments system, National Bank Governor Timur Suleimenov has announced. The decision follows President Kassym-Jomart Tokayev’s signing last week of the decree “On Measures to Stimulate and Develop the Digital Assets Industry in the Republic of Kazakhstan”. Developed jointly by the Ministry of Artificial Intelligence and Digital Development and the National Bank, the decree lays the groundwork for a regulated digital asset market while expanding the use of innovative financial technologies. Among its key provisions, the decree authorizes the use of digital assets and stablecoins for cross-border settlements, opening new channels for Kazakhstan’s exporters and importers. It also introduces a voluntary disclosure mechanism allowing digital assets currently held on unregulated foreign platforms to be transferred into Kazakhstan’s regulated ecosystem. In addition, individuals will be exempt from personal income tax on profits generated through digital asset transactions conducted on platforms licensed in Kazakhstan, creating further incentives for investors to use the country’s regulated infrastructure. The authorities are also expanding the practical use of cryptocurrencies in everyday commerce. Alatau City Bank has announced the launch of its Crypto Pay service, enabling customers to pay for goods and services using cryptocurrency through QR code payments at point-of-sale terminals. According to Suleimenov, cryptocurrency payments are already accepted at approximately 5,000 retail outlets in Astana and Almaty, with plans to expand the network nationwide. “In the future, this functionality will not be limited to Alatau City Bank. Other banks are developing similar solutions, which will eventually become part of a unified QR payment system. That system will integrate not only banks but also payment organizations and cryptocurrency wallets,” Suleimenov said. As Kazakhstan’s digital asset market continues to expand, the government believes a specialized regulator has become necessary. The new committee will have two principal responsibilities: providing oversight of and ensuring transparency in the national payments market, and regulating and supervising digital financial assets. “These instruments are developing extremely rapidly, and without a dedicated institution that understands them as well as the market itself, it will be difficult to effectively oversee all ongoing processes,” Suleimenov said. The National Bank is currently finalizing the committee’s organizational structure and preparing the legal framework required for its operation. According to Suleimenov, the institutional setup should be completed within the next three months, allowing the new regulator to begin operations in the second half of 2026. As previously reported by The Times of Central Asia, Kazakhstan is also considering the creation of a national cryptocurrency reserve. In addition, senior National Bank officials have indicated that part of the country’s National Fund assets and foreign exchange reserves could eventually be allocated to cryptocurrency investments.