Victor Ugochukwu · Dec 14, 2020 . 5min read
Kazakhstan realizes the need for national digital currency, says it would help in abandoning cash
A local official in Kazakhstan proposes the need for a central digital currency, aims at curbing corruption through the reduced movement of physical money
By Shilika · Jul 21, 2020 . 5min read
The board meeting of the anti-corruption agency in Kazakhstan paved way for discussion over the creation of national digital currency. The head of the Anti-corruption Agency, Alik Shpekbayev seems to have proposed the idea of creation of state-owned currency. A local news agency, Kaziform reported on the same.
Alik Shpekbayev, heading the Anti-corruption agency, expressed his opinion on how the state is in dire need of state-owned currency. He further explained the reasons behind it. With the help of a national digital currency, there will be a decrease in the movement of physical money. Hence the decline in usage of fiat will lead to a reduction in bribes. Secondly, it will help the government to monitor the movement of public budget funds. This will lead to full transparency and tracking of corrupt and illicit activities.
Digital Currency will curb corruption
“It’s hard to admit that the system of kickbacks is still flourishing, the rates of which are known to everyone. Some officials who are not clean on their hands, even in such a difficult time for the country, go for outright blasphemy, enriching themselves with the purchase of personal protective equipment, medicines and medical equipment. Agree, arrests and landings alone will not solve this problem. Therefore, it seems expedient to radically revise the system of planning and utilizing budget funds. I see the solution in ensuring total openness and transparency of budgets of all levels, as well as strengthening public and civil control, ”A. Shpekbaev said.
Moreover, he also pointed out how the use of digital currency would lead to reduced transaction costs. He further pointed out how China has been taking measures related to the adoption of a central currency from 2017. There is an increased introduction of digital state-owned currencies in countries across the world. Kazakhstan should not lose out on this.