The Republic of Kazakhstan plans to pay its citizens with cryptocurrency dividends through the Avalanche blockchain. This was reported by local news source PV.
The cryptocurrency will be backed by the Kazakh rate, and the state will provide the equivalent of approximately $5.27 to each citizen on a monthly basis. This amount is equivalent to the monthly salary of a basic state worker.
The blockchain rewards program is being implemented on Avalanche as part of the nation’s digitalization program. According to the report, the system should be ready for use by the end of 2020.
The aim of the program is to accelerate the nation’s next steps into the blockchain world, as in addition to the cash payments citizens will receive cryptocurrency dividends. The nation has yet to explain the technical details of how the dividends will be calculated.
The program is part of the country’s larger digitalization efforts, which include introducing a crypto exchange, a central bank digital currency, and a blockchain-based tax system.
It is currently unclear how the Avalanche blockchain will be integrated into the project. However, the report states that the system will ensure that payments are fast, secure, and have low transaction fees.