Central Bank of Kazakhastan to use blockchain technology for allowing trading in short-term notes..

Central Bank of Kazakhastan is going to use blockchain technology to allow investors to trade in its short term notes (short term bonds) (HT: centralbanking.com):

The National Bank is completing the development of a new technology – a mobile application for the population to conduct transactions for the purchase and sale of securities on the basis of “blockchain.” The pilot project involves the use of short-term notes of the National Bank.

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 liquidity and no restrictions on the periods of ownership. The nominal value of one note will be defined in the amount of 100 tenge, which will allow even small savings for investment to be used. Currently, the system is undergoing the internal testing. It is planned that the product will be launched in the second half of 2017.

In the long run, these solutions can be used for the issue of other securities, for instance, for IPO among the population. Deals will be settled directly without the participation of intermediaries and executed in real time remotely.

“Blockchain” technology will be used for the accounting of executed deals and for ensuring the 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.

Under the project, the purchase or sale of short-term notes will be carried out remotely without the need of a personal visit of a financial institution by a physical entity. Transactions will be settled with the use of electronic money.

This is interesting.

Central banks may worry and not accept bitcoins for payments. But some of them are open to using blockchain technology for security purposes.

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