National Bank of Kazakhstan announced that it is completing the development of blockchain-based mobile application in order to conduct transactions for the purchase and sale of securities.
The blockchain pilot project involves the usage of short-term notes of the National Bank. The project will enable citizens to buy and sell the notes of the National Bank online with the help of mobile phone, bypassing intermediaries, namely brokers and dealers, without taxes and commissions, the release stated. Also, there will be absolute liquidity and no restrictions on the periods of ownership.
Blockchain will play role on accounting of executed deals and ensuring safety and inalterability of information on transactions.
“With the implementation of this system, the National Bank of Kazakhstan will carry out two completely new functions: selling short-term notes directly to the public and issuance of electronic money,” the release said.
The project will make sure that the purchase or sale of short-term notes will be carried remotely without the requirement of a personal visit of a financial institution by a physical entity. Electronic money will be used to settle all transactions.
The blockchain project implementation involves a comprehensive resolution that concerns the application of Kazakhstan's legislation. This includes the field of the securities market, payments and payment systems, as well as countering money laundering and terrorist financing.
In order to buy short-term notes, the citizens are required to register in the system through the mobile or web application, purchase electronic money through the application services, and conduct the transactions for the purchase of securities.
“The search of additional solutions in this field will be continued, involving also the second-tier banks in the project. The results of carried work will be periodically covered by the National Bank of Kazakhstan,” the statement concluded.
