⚠️ HRF CBDC ⛓️🪙 alert from HRF for Kazakhstan (29-JAN-2024)

🗝️ℹ️ (Key Information)

CBDC Status: Launched

CBDC Launch: 2023-11-15

CBDC Model: n/a

CBDC Issued: n/a

Inflation Rate: 8.04%

One-Sentence Summary:

"Kazakhstan Launches its Digital Tenge, a Central Bank Digital Currency Developed with Mastercard and Visa Amid Human Rights and Civil Liberties Concerns."

✅ On November 15, 2023, 🇰🇿's National Bank launched its Central Bank Digital Currency (CBDC), the digital tenge, marking the first official transaction.

✅ The CBDC was developed in collaboration with Mastercard and Visa, and is user-friendly across a variety of shopping platforms and can be stored on multiple devices.

✅ The National Bank aims to expand the accessibility of its CBDC by connecting more banks to its platform throughout 2024.

✅ The development of the digital tenge started back in May 2021, with plans to conduct a pilot project, study the impact of the digital currency, and host discussions with market participants and international partners.

✅ Following the discussions and studies, the National Bank formulated a plan by outlining necessary factors to consider for issuing a CBDC in 🇰🇿.

✅ By 2023, the Central Bank's plans were clear; a phased issuance of a CBDC over the next three years, believing that CBDCs could improve financial inclusion and boost competition.

✅ Despite this optimism, concerns about financial stability, privacy, and potential cybersecurity threats were highlighted.

✅ A study conducted in December 2023 confirmed that CBDC bank cards were interoperable with other payment options and using it for a voucher system would eliminate mediators, accelerate payments, and reduce errors.

✅ However, given 🇰🇿's low score (23 out of 100) in Freedom House’s 2023 Freedom in the World report, the introduction of a CBDC has raised concerns about increased potential for government curbing dissent voices and engaging in corruption.

✅ Given the context of past governmental control on peaceful assemblies and internet blackouts to restrict media outlet access, there are fears about using a CBDC to usurp control over residents' finances.

✅ Rampant corruption in 🇰🇿, according to Freedom House, fuels doubts about the government's promise to maintain surveillance, control or other CBDC risks.

#HumanRights #CivilLiberties #FinancialInclusivity #CBDC #DigitalCurrency #CentralBanking #Kazakhstan

What impact do you believe the launch of the digital tenge will have on the civilian and economical landscape in Kazakhstan in light of the ongoing human rights concerns? Can this new era of financial digitization exacerbate these issues or provide a path towards resolution and increased financial inclusivity?

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