National Bank of Kazakhstan - The Times Of Central Asia

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tokenized notes

National Bank of Kazakhstan Sells Its First Tokenized Notes

The National Bank of Kazakhstan sold short-term notes in the form of digital tokens for the first time at a November 9 auction on the Kazakhstan Stock Exchange (KASE). The tokenized notes accounted for 10 billion tenge (about $22.3 million), or one-fifth of the issue’s total face value of 50 billion tenge (about $111.7 million). The central bank said selling conventional and tokenized notes together allowed it to apply the same pricing rules to both forms and test how the digital platform worked alongside the existing securities market. It sees the trial as a step toward tokenizing other government securities. According to the auction results, demand reached 70.2 billion tenge at face value, about 40% more than the amount on offer. Because the notes sold at a discount, the accepted bids amounted to 48.1 billion tenge, including 9.6 billion tenge for the tokenized notes. The weighted average annual yield was 15.72%. KASE set November 11, 2026, as the settlement date and the start of the notes’ 91-day term. Redemption is scheduled to begin on February 10, 2027. The central bank is responsible for repaying all noteholders. KASE records ownership of the tokenized notes on its digital platform, and the Central Securities Depository keeps a corresponding record. The KASE Clearing Centre handles clearing and settlement for trades made at the auction. Kazakhstan’s rules for issuing and trading digital financial assets took effect on May 1, 2026. The central bank said KASE was the first company it registered to operate both a digital financial asset platform and a digital asset trading platform. In April, Adil Mukhamejanov, chair of KASE’s management board, told the Kazakhstan Finance Day forum in New York that the exchange was working to digitize existing financial instruments and issue new securities directly in digital form. On October 27, telecommunications company ALTA Telecom issued interest-bearing digital securities on the exchange’s platform.

Inflation

Kazakhstan Inflation Expected to Ease in 2027 Despite Higher Spending

The National Bank of Kazakhstan expects inflation to slow in 2027, but less sharply than previously forecast. In September, it raised its forecast to 6.5%–8.5%, up from 5.5%–7.5%, amid concerns about government spending and other pressures. Akylzhan Baimagambetov, the bank’s deputy governor, said on November 5 that the forecast already reflected most of the expected impact of a new government spending program and a planned minimum wage increase from 85,000 to 110,000 tenge ($188 to $243) in January 2027. Kazakhstan announced its People’s Construction program on October 28 to build and upgrade schools, hospitals, local roads, and utility networks. The government plans to draw about 6.5 trillion tenge ($14.4 billion) from the National Fund for the program through the end of 2029. In its September forecast, the bank had assumed withdrawals of 5 trillion tenge ($11.1 billion) from the fund for major projects in 2027–2029. The government said it had approved 262 projects, with a combined cost of 1.5 trillion tenge ($3.3 billion). It plans to draw up a list of specific projects covering every region by the end of 2026. Annual inflation slowed to 9.2% in October from 9.3% in September and 9.8% in August, according to Kazakhstan’s Bureau of National Statistics. In the bank’s September household survey, respondents expected prices to rise 11.8% over the next 12 months, down from 12.1% in August. In a separate October survey of analysts, the median forecast for 2027 inflation fell to 8.3% from 8.5% in August, but remained near the upper end of the central bank’s forecast range. For 2028, analysts expected 6.9%, down slightly from 7%, compared with the bank’s projection of inflation close to its 5% target. Baimagambetov said the bank and the government were updating their measures to curb inflation, focusing on sectors where supply fails to keep pace with demand. In March, the government discussed support for dairy processors and discounted grain and flour for bakeries. Alongside monetary policy, the central bank uses banking regulations to slow growth in consumer lending. On October 23, it cut its base rate from 16.25% to 15.75%, its fourth consecutive reduction since June. The bank indicated that it could hold the rate at that level through the end of the year. It will announce its next rate decision on December 4.

Cross-Border Payments

Central Asia QR Payments: Banks Plan Integration With Azerbaijan

The central banks of Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Azerbaijan have agreed to develop a mechanism for linking their national QR (quick response) code payment systems by the end of 2026, the National Bank of Kazakhstan said on October 29. The agreement was reached at the fourth regional meeting of central bank representatives, held in Tajikistan on October 22–23. Participants supported Kazakhstan’s proposed approach to linking the systems. According to the bank, integration would allow citizens of these countries to pay for goods and services by scanning QR codes through their own bank’s app while visiting other participating countries. Users would also be able to send and receive cross-border transfers in real time. At the meeting, Kazakhstan shared its experience with the Interbank Mobile Payment System, which supports transfers using phone numbers and QR code payments. Launched nationwide in July 2026, the system allows customers to pay through their own banking app even when a merchant uses a payment terminal provided by another bank. Under Kazakhstan’s domestic system, payments using the unified QR code are free for customers. Merchants pay a fee, but the charge for an interbank QR payment must not exceed the fee for an equivalent card payment. The regional meeting also covered cybersecurity and payment fraud. Kazakhstan proposed sharing information and coordinating approaches to regulating digital assets. In May 2026, Kyrgyzstan connected to the international Alipay+ payment network. According to the operator of the national Elkart payment system, the service was initially available in Kazakhstan and Malaysia, allowing users to make purchases through the Elkart Mobile app.

interest rates

National Bank of Kazakhstan Cuts Base Rate to 15.75%

The National Bank of Kazakhstan cut its base interest rate from 16.25% to 15.75% on October 23, marking its fourth consecutive reduction since June 2026. The central bank has indicated that it may keep the rate unchanged through the end of the year, despite a continued slowdown in inflation.Annual inflation declined to 9.3% in September from 9.8% in August, while households’ inflation expectations fell from 12.1% to 11.8%. According to the National Bank, a stronger tenge and relatively tight monetary policy helped slow price increases. Food inflation declined to 8.5%, while non-food inflation fell to 11%. The base rate had remained at 18% since October 2025. It was lowered to 17% in June 2026, 16.75% in July, and 16.25% in September. The cuts have lowered the base rate by 2.25 percentage points. The base rate influences bank lending costs and deposit yields. Lowering it creates conditions for a gradual reduction in borrowing costs for businesses and households, although commercial banks set their own interest rates based on borrowers’ credit risks and funding costs. Nevertheless, borrowing costs remain high, reflecting the challenges facing Kazakhstan’s economy. Inflation is still almost twice the central bank’s 5% target, meaning prices continue to rise rapidly, even as the pace of increase slows. Meanwhile, strong economic growth has brought limited relief to households: official figures show that real per capita incomes increased by just 0.7% year-on-year in the second quarter. National Bank Governor Timur Suleimenov said that further rate cuts will require a more sustained slowdown in inflation. The central bank identifies rising global energy and food prices, high government spending, and potential increases in regulated utility tariffs among the main risks. Annual inflation could rise slightly toward the end of the year because current prices will be compared with those recorded when Kazakhstan restricted utility tariff increases, from October 2025 to March 2026. However, the National Bank intends to focus primarily on how tariff changes affect other prices rather than responding to the tariff increases themselves. Kazakhstan’s gross domestic product grew by 4.2% in January–September 2026, driven mainly by construction, manufacturing, and transportation. Fixed capital investment increased by 7%, while investment in the non-resource sector, excluding budget funds, rose by 25%. Strong investment activity supports domestic demand while also complicating efforts to bring inflation under control. The National Bank aims to reduce inflation to 6.5–8.5% in 2027 and reach its 5% target in 2028. The next base rate decision is scheduled for December 4.

Digital Tenge

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.

Digital assets

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.