New Online Trading and Investment Platform To Appear In Kazakhstan In 2017
Asian lenders are spending millions of dollars developing applications using blockchain, a technology that promises to slash transaction costs, expedite cross-border payments and reduce the risk of fraud, Bloomberg reported.
New high-technology exchange will work in Kazakhstan since September 1, 2017, managing director of the international financial center “Astana” Kairat Kelimbetov reported at the international forum ASTEX Astana Smart City 2016 exhibition.
“We will develop certain platforms together with Astana Innovation and the Ministry of information and communications of Kazakhstan on new approaches, so-called “blockchain” approaches. The privatization of Samruk-Kazyna company will take place at this exchange. Samruk-Kazyna company is nearly 40% of Kazakhstan GDP. New independent financial court and new arbitral center will be created next year which will become the centers, perhaps, for judicial system in all former Soviet Union as the principles of an English common law will be applied for the first time. This exchange will began in full since January 1, 2018,” K. Kelimbetov said.
Blockchain could reduce banks’ infrastructure costs worldwide by $15 billion-$20 billion a year by 2022, according to law firm White & Case. The 36 major Asian banks tracked by Bloomberg Intelligence had combined expenses of about $380 billion last fiscal year.
Here is a list of blockchain projects that some banks active in Asia are exploring:
- BOC Hong Kong (Holdings) Ltd.: Planning to use the technology by the end of the year to value property and improve the efficiency of processing mortgages
- Standard Chartered, Siam Commercial Bank Pcl: Among firms that invested $55 million in Ripple, a San Francisco-based technology developer that is developing systems to make it easier and faster to send payments around the world. Blockchain can cut the cost of cross-border settlement to a 10th of current costs, according to Mizuho’s Sato, whose bank has also joined Ripple’s network.
- Bank of America Corp., HSBC Holdings Plc: Working with the Singapore government on a distributed ledger that enables paperless letters of credit for trade finance.
- Bank of Tokyo-Mitsubishi: Started testing with Hitachi Ltd. a blockchain system for issuing, transferring and collecting electronic cheques in Singapore.
- Bangkok Bank Pcl: Thailand’s largest lender by assets joined R3, a consortium based in New York and London that’s also developing distributed ledger technology and currently backed by more than 50 banks.
- Kotak Mahindra Bank Ltd.: Indian lender is exploring a blockchain collaboration with partner banks for cross-border remittance, according to Chief Digital Officer Deepak Sharma.
- Kazakhstan’s central bank: Considering blockchain for short-term securities deals.
- National Australia Bank: Has been testing Ripple’s blockchain technology with Canadian Imperial Bank of Commerce to move money between Canada and Australia.
Remind, that Kazakh businessman Kenges Rakishev, the main shareholder of country’s largest bank Kazkommertsbank is also a Chairman of SAT & Company Board of Industrial Holding of Directors, Chairman of the Board of Directors of Net Element – the first American company to the Kazakh capital, published in the high-tech stock exchange NASDAQ, a member of the board of directors of the largest Russian Fastlane Ventures venture fund. He is co-founder of the global venture SingulariTeam fund specializing in start-ups and breakthrough technologies in robotic industry.