Kazakh President Pleased with Blockchain Implementation

Kazakhstan’s President, Nursultan Nazarbayev, has expressed satisfaction with the progress made in implementing blockchain technology for tax collection.

The President of Kazakhstan, Nursultan Nazarbayev, wants to see a blockchain-based information system for collecting value-added tax (VAT). During his speech last week at the extended meeting of the government, he offered some positive comments on the work done so far, according to local media.

Finance minister Bakhyt Sultanov reported to Nazarbayev on the changes in domestic financial indicators, noting that all the key budget-related targets had been met.

Sultanov added that his ministry planned to launch the Astana-1 information system by April 2018. It is expected to accelerate imports 18 times. Besides Astana-1, the state is developing a blockchain-based tax collection system, the minister added.

After hearing the report, Nazarbayev said:

“Astana-1 is very important. Reducing the time from one and a half hours to five minutes - this performance will be better than in the OECD [Organisation for Economic Co-operation and Development].”

Addressing the issue of distributed ledger technology, Nazarbayev noted:

“Well done! This is where blockchain technology should be used so that control is tight. The collection of taxes from 15% to 25% is very important for the Ministry of Finance.”

The finance minister said the presentation of the prototype system for VAT collection is planned for August 2018. Kazakhstan is collaborating with the World Bank on the project.

Last month, Nazarbayev set his government the task of introducing blockchain in the customs of the republic.

“It is necessary to ensure the large-scale introduction of digital technologies, such as blockchain, to track the movement of goods in the online mode […], as well as to simplify customs operations. Modern solutions allow organizing interaction between all the links of logistics,” he said.

In June, speaking at the Astana Economic Forum 2017, Nazarbayev called for a global cryptocurrency, saying that it would help the world avoid currency wars, volatility, and speculation.