{"id":98578,"date":"2024-10-30T19:35:27","date_gmt":"2024-10-30T23:35:27","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=98578"},"modified":"2024-10-30T19:36:31","modified_gmt":"2024-10-30T23:36:31","slug":"kazakhstan-cbdc-pilot-cut-vat-refund-wait-times","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/kazakhstan-cbdc-pilot-cut-vat-refund-wait-times\/","title":{"rendered":"Kazakhstan CBDC Pilot Cuts VAT Refund Wait Times"},"content":{"rendered":"\n

The National Bank's latest initiative demonstrates the benefits<\/a> of programmable central bank digital currency.<\/p>\n\n\n\n

\"Kazakhstan<\/figure>\n\n\n\n

Kazakhstan has introduced a new pilot project for its central bank digital currency (CBDC) to demonstrate its programmability potential. <\/p>\n\n\n\n

Collaborating with the Ministry of Finance, the National Bank of Kazakhstan (NBK) showcased how the digital tenge can streamline value-added tax (VAT) reimbursement processes.<\/p>\n\n\n\n

CBDC Accelerates VAT Reimbursement<\/h2>\n\n\n\n

NBK\u2019s chief digital officer, Binur Zhalenov, shared on LinkedIn that VAT was automatically identified in business-to-business transactions using the digital tenge, cutting exporters\u2019 refund wait times from 70-75 days to just 10-15 days, with an aim to enable \u201cinstant reimbursement in the near future.\u201d <\/p>\n\n\n\n

This efficiency gain is credited to the elimination of manual checks by the State Revenue Committee tax authority. <\/p>\n\n\n\n

Zhalenov also mentioned ongoing pilots to incorporate the digital tenge in public procurement, targeted financing from Kazakhstan\u2019s sovereign wealth<\/a> fund, and investment subsidies. <\/p>\n\n\n\n

He wrote, \u201cThese initiatives demonstrate the versatile applications of programmable money in enhancing government processes and financial operations.\u201d Currently, 40 billion tenge (about $81.8 million) circulates in digital form.<\/p>\n\n\n\n

\"\"
Source:\u00a0<\/em>Digital Pound Foundation<\/em>\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/figcaption><\/figure>\n\n\n\n

Digital Tenge Programmability and Development<\/h2>\n\n\n\n

Kazakhstan\u2019s work on a CBDC began with a pilot in February 2023, with programmability as a central feature to combat corruption. <\/p>\n\n\n\n

Later that year, the Center for Interbank Settlements was restructured into the National Payment Corporation to support CBDC infrastructure development. <\/p>\n\n\n\n

In November 2023, a second pilot for the digital tenge illustrated both retail and wholesale applications. <\/p>\n\n\n\n

Local banks issued Visa and Mastercard debit cards linked to CBDC accounts, while wholesale use cases included creating a digital tenge-backed stablecoin, tokenizing gold, and enabling cross-border transactions via SWIFT.<\/p>\n\n\n\n

One project that highlighted the CBDC\u2019s programmability involved using the digital tenge to fund a rail line from central Kazakhstan to the Chinese border. <\/p>\n\n\n\n

In this case, the digital tenge was \u201cmarked\u201d to be used \u201conly to organizations that have fully fulfilled the required obligations.\u201d<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The National Bank’s latest initiative demonstrates the benefits of programmable central bank digital currency. Kazakhstan has introduced a new pilot project for its central bank digital currency (CBDC) to demonstrate its programmability potential. Collaborating with the Ministry of Finance, the National Bank of Kazakhstan (NBK) showcased how the digital tenge can streamline value-added tax (VAT) […]<\/p>\n","protected":false},"author":56,"featured_media":98583,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[773,1124,1935,1502],"class_list":["post-98578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-cbdc","tag-kazakhstan","tag-policy","tag-regulation"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/10\/Kazakhstan-CBDC-Pilot-Cuts-VAT-Refund-Wait-Times.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/98578","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=98578"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/98578\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/98583"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=98578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=98578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=98578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}