- Kazakhstan’s President Kassym-Jomart Tokayev laid out a plan to create a State Digital Asset Fund (essentially a national crypto reserve) managed by the National Bank’s Investment Corporation
- He also instructed the Agency for Regulation and Development of the Financial Market to draft a comprehensive digital asset law, to be enacted by 2026
- It was stated that Alatau would become the first fully digitalized city in the region, and would use cryptocurrency payments
In his annual State of the Nation address, Kazakhstan’s President Kassym-Jomart Tokayev laid out a vision to create a State Digital Asset Fund (essentially a national crypto reserve) managed by the National Bank’s Investment Corporation. This fund would accumulate a strategic reserve of “promising” cryptocurrencies and tokenized assets.
Tokayev also gave regulators a hard deadline of 2026 to deliver a full digital asset law, a move meant to anchor fintech and token-based markets inside a proper legal framework.
Alatau Labeled as First “CryptoCity”
On another note, in May, a big plan to create a “CryptoCity” in Alatau was set in motion. During Tokayev’s speech, he confirmed this was still true, saying that Alatau would become the first fully digitalized city in the region and use cryptocurrency payments. This means that everyday purchases from groceries to public services could be completed using crypto payments.
In parallel, Kazakhstan is already advancing its national digital currency, the digital tenge. It has been piloted since 2023 and is increasingly being integrated into public budgets and financing projects.
Kazakhstan’s crypto-friendly approach
The country has become a major Bitcoin mining hub, likely because of its favorable regulatory environment and low electricity costs. Kazakhstan is responsible for up to 13% of the global hashrate at its peak, but the incentive to mine crypto has led to illegal activity and power grid strain.
As such, these newly announced policies signify a shift toward formalizing and institutionalizing digital assets within the country’s financial system.
Beyond simply boosting innovation, the crypto reserve could offer the country economic diversification, a hedge against inflation, and greater financial sovereignty. All of these things help Kazakhstan’s goal of moving its economy past relying on oil and other goods.
Astana Puts Structure Behind the Plan
The backing of Astana International Financial Centre (AIFC), which already serves as a hub for global crypto and fintech firms, suggests a structured and well-thought-out plan to create the right laws and systems.
Related: U.S. Treasury Clarifies Position on Strategic Bitcoin Reserve Plans
All in all, the cryptocurrency usage in Kazakhstan is growing, as evident in the report by KPMG Caucasus and Central Asia. Among other things, it shows that crypto ownership has doubled from 4% in 2022 to 8% in 2024.
Interestingly, other countries, such as Brazil and Indonesia, are also exploring sovereign crypto reserves.
Related: Brazil’s New 17.5% Crypto Tax Creates a Direct Conflict with Its Pro-Bitcoin Ambitions
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