Kazakhstan is using its digital currency, the digital tenge to fund a new rail line connecting to China.
The National Bank of Kazakhstan started a pilot project to make sure that the funds are properly managed and reach the intended recipients on time.
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The National Bank of Kazakhstan, the NBK announced that this initiative is the second phase in introducing the digital tenge, their own central bank digital currency.
The digital tenge is a programmable form of the national currency used to finance part of the Dostyk-Moiynty railway project, and the bank reports that this system enables efficient spending and better control over funds.
For this pilot, the digital tenges used for the project are tracked through the digital tenge platform.
Payments are only made to organizations that meet all requirements, and the process covers the entire supply chain to ensure all suppliers and contractors are paid, and all payments are traced.
Control the money, control everyone
The use of this technology is important because it helps prevent misuse of funds and improves transparency in how public money is spent.
Also it allows the total financial control of all players on the fields.
The NBK plans to widening the use of the digital tenge platform by including more participants and applying it to other projects funded by the National Fund.
The future of finance
In the future, the National Bank of Kazakhstan will use the digital tenge for various state spending areas, including agriculture, construction, and digitalization of state support measures, and based on the rumors, they also plan to improve tax administration and enable cross-border transactions in digital currencies.
The results from this second phase will be reviewed and presented in a final report by the end of this year.
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