Kazakhstan is intensifying its digital transformation agenda with an ambitious plan to establish a national crypto reserve, signaling the country’s intention to position itself as a regional leader in digital finance and blockchain adoption.
Tokayev’s digital vision
In a recent address, President Kassym-Jomart Tokayev emphasized the importance of building a full ecosystem for digital assets as part of the nation’s broader modernization program. His roadmap includes large-scale reforms aimed at digitalizing government infrastructure, expanding artificial intelligence (AI) integration, and strengthening financial innovation.
Tokayev argued that Kazakhstan must transition to a fully digital economy within the next three years, warning that delays could create economic risks and weaken national competitiveness.
Building a strategic crypto reserve
At the core of this initiative is the planned State Fund of Digital Assets, a crypto reserve to be managed by the National Bank’s Investment Corporation. The fund will accumulate digital assets from multiple sources, including:
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Crypto confiscated in regulatory enforcement actions
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Coins mined via government-backed operations
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Mandatory contributions and taxes from private operators
This reserve builds on proposals first floated by the National Bank in June, which considered converting part of its gold and foreign exchange reserves into crypto assets.
New laws to govern digital finance
To support the transformation, Tokayev urged lawmakers to adopt a Digital Code and an updated Law on Banks before the end of 2025. These measures will cover:
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Circulation and regulation of digital assets
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Integration of AI and big data into finance
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Expansion of digitalization across industries
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Legal frameworks for blockchain-based systems
Such legislation is intended to both encourage innovation and prevent unchecked activity in what Tokayev described as a “fast-moving” space.
The rise of “CryptoCity”
A centerpiece of Kazakhstan’s plan is the development of Alatau City, a special economic zone designed as a fully digital innovation hub. Nicknamed “CryptoCity”, the project will integrate smart technologies, enable crypto-based transactions, and operate under a federal-level legal regime that promotes blockchain experimentation and foreign investment.
Expanding the digital tenge
The government’s push also extends to the digital tenge, Kazakhstan’s central bank digital currency (CBDC). Already in use for select national projects, Tokayev proposed expanding the CBDC’s application to regional budgets, state enterprises, and large-scale financing initiatives.
Kazakhstan in the global crypto race
With these moves, Kazakhstan joins a growing list of countries considering crypto reserves as part of their financial strategy. Brazil, Ukraine, and Indonesia have already initiated similar debates, inspired partly by the United States’ exploration of digital reserves under earlier policy directives.
Outlook
Kazakhstan’s strategy represents a significant shift in financial policy, moving from cautious adoption to aggressive digital integration. If successful, the crypto reserve and CryptoCity projects could transform the nation into a global hub for blockchain innovation—though success will depend on swift legislative action and effective infrastructure rollout.
