By the look of things, various central banks in the world are on the verge of issuing their digital currency. Whether or not this approach will put the concept of digital currency on the radar of consumers, remains to be seen, as there is still a preference for either cash or plastic card payments. Although it has not been confirmed the Central Bank of Kazakhstan will issue their virtual currency just yet, there are signs on the wall this idea might come to fruition sooner than people would expect.
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Similar to most struggling countries around the globe right now, the economy in Kazakhstan is linked to the US Dollar. However, with the recent financial woes hitting stock markets all over the world, combined with a declining oil price , the exchange value of a local currency against the US Dollar is fluctuating by quite a margin. Unfortunately for Kazakhstan, the value of their Kazakhstani Tenge has been losing a lot of ground over the past year.
An intervention by the Central Bank of Kazakhstan would help stabilize matters a bit, although it would be quite a challenge to rebuild trust in the Tenge after three iterations of devaluing the currency. Moreover, consumers are not putting their faith in the Central Bank either, as the financial trouble has been putting a lot of negative attention on the financial institution.
But there is another concern, as the Central Bank is not keeping their reserves in Tenge either. As much as 80% of deposited funds by consumers is being held in foreign currencies , including the US Dollar, Euro, and others. The same principle applies to funds deposited by companies and enterprises, although the threshold is […]
