⚠️ 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:

🇰🇿’s digital currency (digital tenge) has launched, with Human Rights Foundation highlighting issues that could have major implications for users regarding their privacy and civil rights.

✅ The 🇰🇿 National Bank of the Republic launched the use of the Central Bank Digital Currency (CBDC) referred to as the digital tenge on November 15, 2023, setting it at par with similar currencies in China and Russia.

✅ Developed in collaboration with Mastercard and Visa, the digital tenge can be used for various transactions; efforts to expand its reach are planned for 2024.

✅ The Bank has been researching on the CBDC since 2021, developing subsequent pilot projects, and collaborating with international partners like the Bank for International Settlements, the World Economic Forum, and Accenture.

✅ A decision-making framework for the issuance of CBDC was published in July 2022 considering its necessity, benefits and potential risks.

✅ In December 2022, a white paper was published with an extensive outlook on the CBDC, its potential benefits for financial inclusion, competition and innovation.

✅ In collaboration with Binance, a cryptocurrency exchange, a report was published in February 2023 focusing on the future success of CBDCs hinging on their impact on financial stability and privacy.

✅ A pilot in December 2023 clarified that the CBDC was subject to various cybersecurity threats, but its implementation, like for school-lunch vouchers, reduced various inefficiencies.

✅ Concerns loom large over the usage of the CBDC considering the current human rights situation in 🇰🇿, which scores only 23 out of 100 on the Freedom House’s 2023 Freedom in the World report.

✅ Considering the restrictive actions against peaceful assemblies and widespread government corruption, the usage of a CBDC which allows direct control over citizens’ finances, can prove detrimental to privacy and civil liberties.

#CentralBankDigitalCurrency #HumanRights #Privacy #CivilRights #Kazakhstan

What are your thoughts on the digital tenge's potential impact on privacy and civil liberties in 🇰🇿 considering its persisting issues with human rights?

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