Kazakhstan has quietly become one of the most intriguing players in the global digital currency race. While most countries are still debating the pros and cons of central bank digital currencies (CBDCs) versus private stablecoins, Kazakhstan is building both—side by side. The Central Bank’s digital tenge and the new Evo stablecoin are part of a two-tier approach designed to modernize payments, strengthen financial sovereignty, and attract blockchain innovation into the country’s rapidly evolving fintech ecosystem.

The Digital Tenge: Kazakhstan’s CBDC Vision

The digital tenge represents Kazakhstan’s official foray into state-backed digital currency. Its pilot phase began in late 2023 after years of research, sandbox testing, and partnerships between the National Bank of Kazakhstan (NBK), local financial institutions, and technology providers. The first recorded CBDC transaction marked a significant milestone, signaling that the project had moved from theory into practical implementation.

The central bank’s goal is to integrate the digital tenge into everyday financial life — from public finance to retail payments. The CBDC is being tested in multiple scenarios such as VAT refunds, social benefit disbursements, real estate deals, and digital government procurement. Each test explores how digital currency infrastructure can replace slow, paper-heavy systems with instant, verifiable transactions.

Importantly, the NBK has taken a “gradual and layered” approach. Rather than forcing adoption, it is focusing on infrastructure readiness, regulatory alignment, and interoperability with banks, mobile wallets, and payment systems. The digital tenge is envisioned as the monetary backbone — a secure, sovereign layer that supports both retail and wholesale payments, while maintaining the central bank’s control over money supply and policy.

The Arrival of Evo: Kazakhstan’s Homegrown Stablecoin

In 2025, Kazakhstan took another bold step — the launch of Evo, also known as KZTE, a stablecoin pegged to the Kazakhstani tenge. Developed by local crypto exchange Intebix in collaboration with Eurasian Bank, the project operates under the National Bank’s regulatory sandbox. This structure allows it to experiment within a controlled environment, ensuring compliance while encouraging innovation.

Unlike the CBDC, Evo is not issued by the government. Instead, it represents a private-sector initiative with public oversight. It is backed one-to-one by tenge reserves and operates on the Solana blockchain, one of the fastest and most efficient networks for digital assets. Evo is designed to enable seamless, low-cost transactions for e-commerce, fintech applications, and cross-border remittances — areas where CBDCs typically move slower due to policy constraints.

The involvement of major global payment players, such as Mastercard, provides an additional bridge to international payments. Evo’s architecture makes it compatible with global digital finance rails, enabling transactions that can move across borders almost instantly, while remaining under Kazakhstan’s regulatory supervision.

CBDC vs Stablecoin: Complementary, Not Competitive

A common misconception is that CBDCs and stablecoins are inherently in conflict. Kazakhstan’s approach aims to prove otherwise. The digital tenge and Evo serve fundamentally different purposes — one as a monetary anchor and the other as a commercial enabler.

• The digital tenge is the state’s instrument for secure, policy-driven payments and public-sector transactions. It represents official money in digital form, under full control of the central bank.
• Evo, on the other hand, is a privately issued token designed for innovation in the consumer and fintech space — allowing integration with apps, payment gateways, and global blockchain systems.

In this dual-track model, the CBDC functions as Tier 1, the trusted base layer for the nation’s financial system, while Evo operates in Tier 2, the agile layer where market-driven products can emerge. This synergy allows Kazakhstan to maintain sovereignty over monetary policy while encouraging private-sector creativity and competition.

Why Kazakhstan is Taking the Hybrid Route

1. Strengthening Monetary Sovereignty

For a country historically reliant on foreign currencies and subject to regional volatility, building its own digital money ecosystem is a strategic move. By introducing both a CBDC and a domestic stablecoin, Kazakhstan reduces its dependence on U.S. dollar-pegged stablecoins like USDT and USDC, ensuring that digital transactions remain tied to its own national currency.

2. Positioning as a Central Asian Fintech Hub

Kazakhstan has already made headlines as a key hub for Bitcoin mining and blockchain startups. By creating a regulatory-friendly environment that welcomes responsible innovation, the government aims to attract global fintechs, blockchain developers, and investment capital. The dual digital system signals that Kazakhstan is not just following trends — it’s shaping the regional digital finance landscape.

3. Expanding Financial Inclusion

The digital tenge’s integration with e-government systems could help unbanked citizens access financial services directly through mobile wallets or state applications. Meanwhile, Evo can bring financial technology into the hands of merchants, small businesses, and app developers, who can build real-world payment and remittance solutions faster than with traditional banking rails.

4. Encouraging Private Innovation

Rather than monopolizing digital payments under a government-controlled CBDC, Kazakhstan’s sandbox model empowers local companies to innovate responsibly. Evo’s creation under this framework is a blueprint for other nations — showing how regulators and private firms can collaborate without stifling each other.

Risks and Challenges Ahead

Despite its innovative framework, Kazakhstan’s dual strategy comes with challenges. The country must ensure that CBDC infrastructure remains secure against cyber threats and fraud. Technical interoperability between the digital tenge, Evo, and traditional financial systems must be seamless to prevent fragmentation.

Regulatory clarity is also crucial — defining how stablecoins will be treated under financial law, what reserve mechanisms they must maintain, and how consumer protection will be enforced. The central bank must also balance innovation with macroeconomic stability, ensuring that digital assets don’t create unintended liquidity or capital flow risks.

Inflation and exchange rate pressures on the Kazakhstani tenge itself remain macroeconomic concerns. Both the digital tenge and Evo’s credibility depend on the public’s trust that these digital instruments are fully backed, redeemable, and stable.

The Global and Regional Ripple Effect

Kazakhstan’s experiment could serve as a model for other emerging economies navigating the digital currency question. While the U.S. and EU remain cautious about CBDCs and privately issued stablecoins, developing nations are using these tools to modernize payment systems and strengthen financial independence.

For Central Asia, Kazakhstan’s success could encourage regional neighbors — such as Uzbekistan and Kyrgyzstan — to explore similar frameworks. Its collaboration with global players like Solana and Mastercard also demonstrates that emerging markets can build advanced digital finance systems without waiting for Western blueprints.

The Road Ahead

Kazakhstan’s next steps will focus on expanding real-world use cases for both the digital tenge and Evo. The digital tenge is expected to gradually connect with commercial banks, government platforms, and fintech payment systems, transforming into a functional layer of the national economy. Meanwhile, Evo will continue to test integrations with consumer wallets, mobile apps, and cross-border payment channels.

The success of this dual model will depend on adoption — by citizens, merchants, and financial institutions alike. Education, transparency, and consistent regulation will determine whether Kazakhstan can turn its pioneering experiment into a long-term competitive advantage in the global digital economy.

Conclusion

Kazakhstan’s digital finance experiment represents a pragmatic balance between state control and private innovation. The digital tenge anchors trust, while Evo injects agility into the ecosystem. Together, they could create one of the most forward-thinking payment infrastructures in the region — blending the security of a central bank’s oversight with the dynamism of blockchain technology.

If successful, Kazakhstan won’t just be a test case for CBDC development — it could redefine how emerging nations design digital currencies that empower both the government and the market.