THE ECONOMIC IMPLICATIONS OF DIGITAL TENGE ON MONETARY POLICY IN KAZAKHSTAN

Abstract

This paper analyzes the economic implications of Digital Tenge (DT) introduction on the monetary policy of Kazakhstan. The research mainly focuses on formulating suggestions for the cost and distribution of DT. Optimal suggestions are derived by analyzing the effect of various options for cost and possible distribution limitations on economic agents’ welfare. The analysis reports minor positive welfare gains in the case of costless DT (from 0.0010% to 0.0040%) with a slightly higher welfare achieved and cost range possible through allowing only 20% of the population to carry DT.