Kazakhstan needs a digital currency that it can provide “Full transparency in the flow of budget funds”says the head of the country’s anti-corruption services. He adds that the project would also be needed to fight corruption.
Kazakhstan and the digital currency
Alik Shpekbayev, chairman of the Anti-Corruption Agency of the Republic of Kazakhstan, said that national digital currencies such as Chinese digital yuan , should contribute to a more transparent financial system. ”The news came from the local news agency Kazinform July 21.
According to the official, issuing the national digital currency should limit cash transactions, which are one of the main tools of criminals who use banknotes for corruption purposes. Thus, he believes, digitizing a country’s currency has the potential to prevent corruption at government level as it will provide “Full transparency in the flow of budgetary funds during public procurement”.
The official continued saying that adopting the country’s digital currency would cut transaction costs significantly.
– As soon as digital tenge is successfully implemented, we will be able to forget about transaction fees – Shpekbayev argued.
Shpekbaev also mentioned the ongoing pilot of the Chinese digital currency, warning government officials that Kazakhstan, with its current tardiness in this field, risks being late with its own national digital currency.
It is worth adding that his comment appears shortly after the presentation of the national digital currency development plan by Kazakh officials in early July. In addition, we already know that Kazakhstan plans to double its investments in the digital currency mining market by the end of 2020, and to accelerate the development of the central bank’s digital currency (CBDC).
Kazakhstan is a country that has focused on cryptocurrencies in recent years. There are many indications that he has ambitions to become one of the world’s main centers of this market, especially in terms of BTC mining. Why? This is certainly due to the fact that electricity prices are low. According to local reports, Kazakhstan intends to attract around $ 740 million in cryptocurrency mining investments over the next three years.
In turn, the President of Kazakhstan, Kassym-Jomart Tokayev, signed an act regulating the cryptocurrency market in June.