ASTANA – Kazakh Prime Minister Olzhas Bektenov chaired a meeting on April 3 discussing the implementation of the digital tenge and mechanisms for monitoring targeted budget fund usage, reported the Prime Minister’s press service.
Olzhas Bektenov said that the digital tenge initiative would be pivotal in reengineering financial systems and improving the transparency of government spending. Photo credit: Prime Minister’s press service.
The meeting focused on the current state and plans for developing Kazakhstan’s national digital financial infrastructure, enhancing the traceability and efficiency of public fund spending through the digital tenge.
Binur Zhalenov, advisor to the National Bank chair, reported on key components of the digital infrastructure, including the interbank payment card system, Open API, and the Anti-Fraud Center. In an interview with The Astana Times YouTube channel, Zhalenov said the digital tenge could potentially transform how money moves.
The National Bank’s systems now process 90% of the country’s total payment turnover and nearly 30 million requests for digital biometric identification. Illegal transactions worth 2 billion tenge (US$3.9 million) have been promptly blocked, and over 36,000 fraud cases were identified.
Currently, 108 organizations, including second-tier banks, large payment entities, and microfinance firms, are connected to the digital infrastructure. In July, it is planned to launch a service for interbank payments via QR with second-tier banks.
A pilot project using the digital tenge to ensure transparency in public fund usage was also discussed. Around 250 billion digital tenge have been issued to date, with the unique digital tags making it possible to track funds from allocation to full expenditure. This method has been effective in sectors prone to corruption.
Kazakhstan also launched a digital VAT pilot project based on the digital tenge to improve VAT administration and speed up refunds. Bektenov emphasized the importance of scaling up the national digital financial infrastructure and expanding the use of digital tenge. The introduction of digital tenge was crucial in transforming financing processes, ensuring greater transparency in how budget funds are spent.
Bektenov reiterated that the digital tenge initiative would be pivotal in reengineering financial systems and improving government spending transparency. He urged that entrepreneurs dealing with public funds fully disclose the supply chain and spending details.
