Kazakhstan's BidaiCoin cryptocurrency - new solution for local farmers?

Finance Materials 2 May 2019 12:07 (UTC +04:00)

Baku, Azerbaijan, May 2

By Fakhri Vakilov – Trend:

Operations using payment instruments in the total amount of 109.9 trillion tenge were carried out in Kazakhstan in January-March 2019, which is 35.5 percent more than in the same period last year (81.1 trillion tenge), Trend reports the reference to ranking.kz.

In monetary terms, the most operations in Kazakhstan were carried out with payment orders - 102.1 trillion tenge.

The amount of transactions carried out with payment cards reached 5.9 trillion tenge, of which cash withdrawal operations amounted to 3.6 trillion tenge, non-cash payments - 2.3 trillion tenge.

In general, payment orders and payment cards account for 98.2 percent of the total figure.

In times of technological progress and digitalization of the economy, there are many ways to pay for certain services. For example, on April 18 of this year, during the round table on the financing of agriculture in the parliament, the chairman of the board of JSC Information and Accounting Center Zhanasyl Ospanov invited farmers to switch to cryptocurrency - bidaiCoin.

The main reason for the transition to cryptocurrency, according to Zhanasyl Ospanov, is the elimination of risks when interacting with second-tier banks.

The interaction scheme will look like this: a farmer transfers tenge to the Information and Accounting Center. The center, for its part, acting as an online exchanger, transfers the tenge to bidaiCoin without commission. Course: 1 bidaiCoin = 1 Kazakh tenge.

BidaiCoins are added to the farmer’s personal account and used to purchase inventory items (fuel, fertilizers, etc.).

The country already has an information system for grain receipts. As of April 25, 2019, 152,600 users are registered in the state electronic register of holders of grain receipts. The main share of users falls to the Turkestan region - 29 percent (44,300 users) of the total.

Moreover, in the top three regions by the largest number of portal users are Almaty (23.5 percent of the total, or 35,800 users) and East Kazakhstan (9.2 percent, or 14,100 users) regions.

It is noteworthy that of the total number of users, almost half, or more precisely 47.6 percent (72,700 users), fall on individuals. The share of individual entrepreneurs was 41.7 percent (63,700 users), and the share of legal entities - only 10.7 percent (16,300 users).

Creating a new cryptocurrency can cause a number of questions, since the financial literacy of the population is still at a low level, and the largest part of the participants on the portal of grain receipts falls on the population.

Earlier it was reported that Kazakhstan is going to launch a dedicated cryptocurrency for agricultural holdings and companies. The coin will be usable for grain trading, getting mortgage loans and agricultural machinery subsidies.

The forecasts of the international research and consulting company International Data Corporation (IDC) show that, in 2019, global investment in blockchain solutions will amount to almost $2.9 billion, an increase of 88.7 percent compared to 2018.

($1-381.22 tenge on May 2)


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