Kazakhstan plans to establish a national encryption reserve, leading a new era of digital assets in Central Asia.

Kazakhstan plans to establish a state-backed Crypto Assets reserve by 2026 through a digital asset bill. Kazakh President Kassym-Jomart Tokayev has ordered the investment department of the national bank to set up a "National Digital Asset Fund" to hold key digital assets. He also pledged to expand the use of the digital tenge and promote banking reforms to direct funds towards high-tech enterprises. This series of measures indicates that Kazakhstan is actively seeking to become a leader in the digital finance sector in Central Asia.

President Tokayev has ordered the establishment of a digital asset fund

President Tokayev stated in his annual speech on Monday that Kazakhstan must "establish a mature digital asset ecosystem as soon as possible." He proposed that a "National Digital Asset Fund" be managed by the investment company of the National Bank, aimed at accumulating a strategic reserve composed of Crypto Assets and tokenized assets.

The President instructed lawmakers to complete a digital asset law by 2026 to regulate tokenized platforms and welcome new competitors. According to Akorda Press, Tokayev stated that the fund would accumulate a strategic encryption reserve, focusing on the most promising assets in the emerging digital financial system. He added, "Given the current reality, we must focus on crypto assets. A national digital asset fund should be established under the investment company of the national bank."

In this regard, cryptocurrency industry opinion leader Mario Naval commented on his X account: "The snowball effect is real."

Digital Genghis Promotion, Crypto City Vision and the First Bitcoin ETF

Kazakhstan has become one of the most active countries in Central Asia in terms of digital assets. They launched a pilot program for the digital tenge in November 2023 and plan to start using it in the public budget by mid-2025. Kazakhstan plans to use the digital tenge to fund projects through the national fund and intends to expand its role nationwide.

Tokayev also confirmed the plan to build a "Crypto City" in Alatau, a city located in southeastern Kazakhstan with a population of about 52,000. He stated that the city will become "the first fully digitalized city in the region," where residents can use Crypto Assets for payments in their daily lives. He described this as a model that combines "technological advancement and the most favorable living conditions," which is also part of the national strategy aimed at integrating digital assets into everyday business activities.

The country also launched the first spot Bitcoin ETF in the Central Asia region in August, highlighting its ambition to become a regional digital finance leader. The fund was launched by Fonte Capital on the Astana International Exchange, directly holds Bitcoin, and is custodied by BitGo.

Kazakhstan has become a leading Bitcoin mining center. Due to cheap electricity and favorable regulations, it once accounted for about 13% of the global hash rate. However, the mining boom has also put pressure on the power grid and spawned illegal mining activities.

Conclusion

Kazakhstan is positioning itself as a regional pioneer in the digital finance sector through a multi-faceted strategy. From establishing national-level Crypto Assets reserves, creating dedicated digital asset laws, to promoting digital tenge and building a "Crypto City", these initiatives aim not only to attract investment and technology but also to deeply embed digital assets into its economic and social structure. This bold attempt by Kazakhstan provides a noteworthy case for other countries around the world seeking to embrace digital assets, and its future developments will undoubtedly have a significant impact on the crypto ecosystem in Central Asia and globally.