ASTANA – Kazakhstan’s National Bank has launched Invest Online, a system allowing Kazakhs to borrow funds by buying and selling short-term notes and securities recently issued by the bank. The safe and riskless investments can be completed at any time using the mobile app.
Photo credit: tadviser.ru
“The system operates round-the-clock and all the transactions are free of charge since no commission taxes are involved. The notes are also highly liquid; in other words, they can be sold and converted into cash at any time without risk of losing value and income is accrued on a daily basis. The transactions and income accrued can be monitored on the personal account in the system,” said National Bank Chair Daniyar Akishev.
The bank began March 27 issuing 50 billion tenge (US$155.5 million) in short-term notes. The maturity or lifetime is one year with an interest rate of 8.5 percent.
The price of the notes is set to increase steadily; a 92.19 tenge (US$0.286) note issued one day will be 92.21 tenge (US$0.286) the following day and 92.23 tenge (US$0.287) the next. After a year, a note will cost 100 tenge (US$0.31).
“If one buys and sells the note in one day, he will earn the same amount of money. Moreover, one can receive more selling a note few days later. There is no limit on the number of notes available for one person to purchase,” he added.
The application was developed by the bank using three innovative solutions.
“First of all, blockchain technology was for the first time used on a state level. Each transaction is recorded as a series of individual blocks, which ensures information is safe and unchangeable. Secondly, it is the first time for the National Bank to issue electronic currency applicable for securities transactions. Finally, all the transactions are available online on electronic devices,” said Akishev.
The app is available on Play Market and the App Store and registration can be completed using one’s electronic digital signature or personal account in the Single Accumulative Pension Fund. Individuals can also join the system through a central securities depository account. Eligibility is restricted to Kazakh citizens.
Special electronic currency created for the sale and purchase of given notes is easily convertible into tenge. The electronic wallet can be filled with cash via terminals or using a bank account. The reverse conversation is made through bank accounts only.
At present, the system can only be used to trade notes with the National Bank. In the future, however, it might also be possible for people to trade between one another.
“The technological capabilities of the system will allow trading not only National Bank’s notes, but also securities of Kazakh companies entering an IPO to attract funds. In the future, Invest Online will be a safe and convenient platform for Kazakh citizens to trade any security,” Akishev added.
