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TLDR
- azakhstan aims to create a national crypto reserve overseen by the National Bank.
- The country plans a full-fledged digital asset ecosystem by 2026.
- A new digital asset law will regulate fintech and tokenized assets.
- Kazakhstan’s “CryptoCity” will use crypto for payments and innovation.
Kazakhstan’s president, Kassym-Jomart Tokayev, has announced an ambitious plan to create a national cryptocurrency reserve and a new digital asset law by 2026. The initiative aims to build a comprehensive digital asset ecosystem within the country.
In his annual address, Tokayev emphasized the need to develop the country’s digital financial systems, suggesting that digital assets could play a crucial role in reviving Kazakhstan’s economy. He stated, “We must focus on crypto-assets and establish a State Digital Asset Fund under the National Bank’s investment corporation.” This fund would accumulate a strategic crypto reserve composed of promising assets in the digital financial space.
Kazakhstan Establishing a Digital Asset Ecosystem
The government plans to establish a legal framework for digital assets, which includes creating legislation to regulate tokenized assets and fintech platforms. This move would open up the financial sector to new competitors and foster greater innovation.
Tokayev pointed out that Kazakhstan’s national bank should take a leading role in this transition.
He stressed the importance of passing the proposed banking law before 2026, which would facilitate the inclusion of digital assets into the regulated financial system. The goal is to develop a market-friendly environment where fintech companies can thrive.
Role of “CryptoCity” in Alatau
As part of the larger vision for digital assets, Tokayev confirmed the development of “CryptoCity” in Alatau, a city in southeastern Kazakhstan. The city will serve as a testing ground for crypto-based transactions, where residents can use digital currencies for daily purchases.
“Alatau will become the first fully digitalized city in the region, utilizing crypto payments,” said Tokayev. He believes that the city will represent the future of Kazakhstan, combining technological advancements with a high standard of living. The project is part of a broader effort to modernize Kazakhstan’s infrastructure and integrate digital solutions into everyday life.
Kazakhstan’s Growing Role in the Global Crypto Market
Kazakhstan has already established itself as a significant hub for cryptocurrency mining due to its favorable regulatory environment and low electricity costs. The country accounted for around 13% of Bitcoin’s global hashrate at its peak, making it one of the largest Bitcoin mining centers in the world.
However, the surge in mining operations has led to illegal activities and power grid strain. The government has sought to address these challenges while developing a more formalized approach to digital assets. By creating a national crypto reserve, Kazakhstan hopes to better manage the assets in the new digital economy while ensuring proper regulation and control.
Alongside the plans for a crypto reserve, Tokayev also highlighted the importance of Kazakhstan’s central bank digital currency (CBDC), the digital tenge. The government has already used the digital tenge to finance projects through the National Fund and intends to expand its use. Tokayev aims to integrate the digital tenge into national, local, and state-owned enterprise budgets, further boosting Kazakhstan’s digital financial system.
