Kazakhstan | The digital tenge: what businesses need to know

What is the digital tenge, in simple terms?

The digital tenge is a new form of Kazakhstan’s national currency. It is issued by the National Bank of the Republic of Kazakhstan (hereinafter referred to as the “NB RK”), and it has the same legal tender status as regular cash or non-cash money. The difference is that the digital tenge exists and circulates on a separate digital platform created by the NB RK.

The government is introducing the digital tenge to develop the country’s payment infrastructure and provide businesses and citizens with new payment tools. For example, to automate transfers in cases where manual approval or additional checks were previously required.

How does the digital tenge differ from conventional non-cash money?

At first glance, the difference isn’t obvious: in both cases, the money exists in electronic form. But there are two fundamental differences.

First, non-cash money is held in bank accounts, while the digital tenge is issued and circulated on a separate platform operated by the National Bank of Kazakhstan.

Second, the digital tenge supports smart contract technology and fund labeling. Simply put: you can set conditions in advance under which the money will be spent, and the money will automatically be used only for authorized purposes. Conventional non-cash money cannot function this way.

How It works in practice

Users open a digital account on the National Bank of Kazakhstan’s platform. Through this account, they can purchase digital tenge, transfer it to other users, pay them for goods and services, and exchange it for regular cash or non-cash funds at any time.

The National Bank of Kazakhstan acts as the issuer: it issues the digital tenge and ensures its circulation and redemption.

What the digital tenge offers businesses

For companies, smart contracts and fund tracking play a key role. In practice, this might look like this:

The government provides a subsidy on the condition that the funds are used exclusively for purchasing equipment. Fund tracking prevents these funds from being spent on anything else, which means businesses do not need to separately prove that the funds were used for their intended purpose—this will be automatically evident.

In settlements between parties to an investment project, a smart contract can automatically transfer the next tranche as soon as the contractor confirms completion of a work phase, without additional requests or approvals.

For companies participating in government procurement, working with subsidies, or involved in large-scale investment projects, this means less manual reporting and more transparent settlements with counterparties and the government.

What you need to know right now

The procedures for the issuance, circulation, and redemption of the digital tenge are set forth in the Rules approved by Resolution No. 42 of the Board of the National Bank of the Republic of Kazakhstan dated April 29, 2026. These rules took effect on July 19, 2026; thus, as of today, the digital tenge is not a future component but an active part of Kazakhstan’s payment system.

The main provisions governing the digital tenge as a whole are set forth in Law No. 11-VI of the Republic of Kazakhstan “On Payments and Payment Systems” dated July 26, 2016.

Conclusion

For businesses, the digital tenge is first and foremost a new tool: it allows for the automation of payments where manual oversight was previously required and makes financial transactions more transparent for regulatory authorities and transaction partners. As the platform develops, the scope of application for such tools is likely to expand, particularly in projects involving government participation.

Legal basis

This article was prepared based on the following regulatory legal acts of the Republic of Kazakhstan:

• Law of the Republic of Kazakhstan No. 11-VI of July 26, 2016, “On Payments and Payment Systems” (as amended and supplemented).
• Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 42 of April 29, 2026, “On the Approval of the Rules for the Issuance, Circulation, and Redemption of Digital Tenge.”