Kazakhstan, the land behind one of the largest sources of Bitcoin mining hash power, has released the results of a pilot program for its digital tenge.

Co-ordinate to a Wednesday report, the National Banking concern of Kazakhstan, or NBK, said it had confirmed the possibility of implementing a retail central bank digital currency, or CBDC, based on distributed ledger technology. In addition, the central banking concern tested how Republic of kazakhstan's citizens might use a digital tenge for offline payments besides every bit its programmability.

In a series of hypothetical scenarios, the central banking company tested how a CBDC could exist used between 2nd-tier banks and other external participants. The tests also explored how a digital tenge would work for cantankerous-border transactions under Republic of kazakhstan'due south regulatory framework.

Source: National Banking company of Republic of kazakhstan

The results of the report suggested expanding the CBDC airplane pilot program to include marketplace participants and infrastructure players for different scenarios, likewise as proposing clarifying language to be used past the country'southward regulators. In addition, the depository financial institution proposed launching a Digital Tenge Hub assuasive market participants to assist in the evolution of a CBDC.

"The NBK of the Democracy of Kazakhstan volition ensure the development of a final model to decide on the introduction of the [digital tenge] and perform a presentation of interim results of the written report and discussion with all stakeholders in July 2022," said the report. "A determination on the need for the [digital tenge] introduction volition be made in Dec 2022, taking into account the final results of a comprehensive written report based on the developed model."

Related: Kazakhstan Senate approves legislation regulating crypto service providers

Kazakhstan originally opened a public consultation on the possible rollout of a digital tenge in May, with the central bank saying at the time a CBDC would not be intended to replace cash or cashless payments. Since that time, many crypto miners fleeing a regulatory crackdown in China have ready shop in Kazakhstan, leading to reports of additional revenue as well as possible strains on the state's power grid.