Kazakhstan Bank Develops Blockchain App for Securities

Kazakhstan Bank Develops Blockchain App for Securities

The Central Bank of Kazakhstan has recently completed their pilot phase for the blockchain mobile application that they have developed. This now enabl

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The Central Bank of Kazakhstan has recently completed their pilot phase for the blockchain mobile application that they have developed. This now enables investors to purchase, sell, or trade ownerships of different securities in a direct manner from the central bank itself. Specifically, the buying of short-term debt notes from the National Bank of Kazakhstan is now doable without commission fees due to the pilot phase. They have announced that the debt notes for sale are expected to be valued at around 100 Kazakhstani Tenge (approximately $0.3).

This is an excerpt from that announcement, stating the advantages that the blockchain mobile application can bring to the issuance system and for the investors. It says, quote:

“The proposed project will allow citizens to buy and sell the notes of the National Bank online from a mobile phone, bypassing intermediaries, namely brokers and dealers. No taxes and no commissions. Absolute liquidly and no restrictions on the periods of ownership.”

Accessing the feature as an investor will be a simple registration process that is also done through the application itself. The application will then prompt them the registered user to buy electronic money, usually in the form of a top-up, before any purchasing of securities can happen. The application is available for the user to buy or sell securities at any time.

The Central Bank has also explained that any and all transactions will a special block for it as each operation with short-term notes will be stored. That stored information will have its own identifier and formation algorithm.

It took a full and comprehensive legislative reform in the country, in conjunction with the Central Bank’s dedicated show of resolution in order for this change in securities and payments to happen. They have cited that combating money laundering was one of the key reasons for that shift, so that the need to comply with strong customer identification protocols will be fulfilled. Due to the immediate and direct nature of the transaction that the mobile application brings, there will be no need for an intermediary or anyone from the investor or authorities to visit and personally see to the transaction. This results into the remote identification and convenience that the investors will enjoy.

There have been hints and rumors that the scope of the blockchain mobile application will not end there, and that there are talks about including the issuance of other assets, specifically pointing to IPO’s.

Still, the blockchain mobile application will continue to undergo internal testing for the meantime, but is scheduled to be released to the public later this year.

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