Kazakhstan needs a national crypto currency to tackle corruption

The president of Kazakhstan’s anti-corruption service has asked his government to develop a national digital currency to combat corruption in the country.

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Alik Shpekbayev, president of the Anti-Corruption Agency of the Republic of Kazakhstan, said that national digital currencies such as China’s digital Yuan should contribute to a much more transparent financial system. The news was reported by the local news agency Kazinform on July 21.

National digital currency could reduce cash transactions

According to the official, an implementation of the national digital currency should inevitably reduce cash transactions, which is one of the main tools for illicit activities such as bribery. Kazakhstan’s digital trend has the potential to prevent government corruption by providing “full transparency in the movement of budget funds during public procurement,” Shpekbayev said.

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The official went on to say that the adoption of the national digital currency will significantly reduce transaction costs. “As soon as the digital structure is successfully implemented, we can forget about transaction fees,” Shpekbayev argued.

Shpekbayev mentioned China’s ongoing digital currency testing program and warned government officials that Kazakhstan runs the risk that it is already too late to develop its own national cryptomone currency.

Kazakhstan and its progress towards the adoption of cryptomoney

The latest news comes shortly after Kazakh officials presented a plan for the development of the national digital Bitcoin Investor currency in early July. In particular, Kazakhstan plans to double investment in digital coin mining by the end of 2020, as well as to boost the development of its own digital currency issued by the central bank, or CBDC.

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Kazakhstan, a post-Soviet country, has paid attention to the latest trends related to crypto space in recent years. The country is now apparently established as a major global mining centre due to low electricity costs. According to local news, Kazakhstan aims to attract around USD 740 million in investment in cryptomone-related activities over the next three years.

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The country has also made progress in the regulation of cryptomonies. As reported, the President of Kazakhstan, Kassym-Jomart Tokayev, signed a bill regulating cryptomonies in the country at the end of June 2020.