Kazakhstan plans to establish a state-backed digital asset reserve and a pilot “CryptoCity” in Alatau to enable crypto payments. The proposed State Fund of Digital Assets would be built on the National Bank’s Investment Corporation to accumulate a strategic crypto reserve of promising digital assets.
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State-backed digital asset reserve proposed to secure strategic crypto holdings
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CryptoCity pilot in Alatau aims to allow crypto payments across a fully digitalized urban zone.
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Kazakhstan accounts for a substantial share of global BTC mining (≈13% peak hashrate), driving regulatory and grid-policy responses.
Kazakhstan crypto reserve proposed: State Fund of Digital Assets via National Bank’s Investment Corporation — learn what this means for CryptoCity in Alatau and national policy.
The president announced his “CryptoCity” plans would be developed in Alatau, while the government would move forward to create a strategic crypto reserve with “promising assets.”
Kassym-Jomart Tokayev, the president of the Republic of Kazakhstan, laid out plans for the country’s AI and digital asset endeavours, including a proposal to establish a strategic cryptocurrency reserve.
What is Kazakhstan’s proposed national crypto reserve?
Kazakhstan crypto reserve refers to a proposed State Fund of Digital Assets to be created on the basis of the National Bank’s Investment Corporation. The fund would accumulate a strategic reserve of “promising assets” within the new digital financial system and be established under legislation targeted for passage before 2026.
How will the State Fund of Digital Assets be structured?
The president suggested the Agency for Regulation and Development of the Financial Market draft enabling legislation. The proposal envisions the National Bank’s Investment Corporation as the operational base, with governance and asset-selection criteria defined by law. This approach aims to centralize seized and purchased digital assets into a sovereign strategic reserve.
In an annual address, Tokayev called for a “full-fledged ecosystem of digital assets as soon as possible” to help restore bank liquidity to productive parts of the economy. He directed that draft legislation be prepared with a target to adopt it before 2026.
Why is CryptoCity in Alatau being proposed?
Tokayev has endorsed a pilot zone to test crypto-based payments and digital services. Alatau—an urban area of roughly 52,000 residents in southeastern Kazakhstan—was identified as the intended site for the pilot. The president described Alatau as a potential “first fully digitalized city in the region,” combining technological progress with improved living conditions.
The government frames CryptoCity as both an innovation hub and a controlled environment to trial regulatory, tax and payment solutions before wider national rollout.
How does this relate to Kazakhstan’s role in Bitcoin mining?
Kazakhstan has been a major global hub for BTC mining, at one point accounting for about 13% of Bitcoin’s global hashrate. That concentration contributed to a rise in unauthorized operations and placed pressure on the national power grid, prompting policymakers to balance mining incentives with energy security and compliance measures.
When could the legislation and pilot move forward?
The president asked for draft legislation from the Agency for Regulation and Development of the Financial Market with the goal of passing laws before 2026. The timeline for the CryptoCity pilot was reaffirmed alongside the legal work, signaling implementation steps over the next 12–24 months.
Frequently Asked Questions
How will the fund select which digital assets to hold?
Selection criteria are expected to be codified in draft legislation and governed by the National Bank’s Investment Corporation. Criteria will likely include asset liquidity, regulatory compliance, and systemic risk assessments in line with central banking standards.
Will the reserve use seized digital assets?
Reports have indicated the national bank has considered funding a reserve with seized digital assets; the president’s remarks make creating a state fund a priority, but details on funding sources remain to be finalized in legislation.
Key Takeaways
- State Fund proposed: A sovereign digital-asset reserve would be created via the National Bank’s Investment Corporation to hold promising crypto assets.
- CryptoCity pilot: Alatau is set to become a pilot zone where crypto payments and digital services will be tested.
- Policy timeline: Draft legislation is to be prepared with a target to pass laws before 2026; pilot implementation is planned in the near term.
Conclusion
Kazakhstan’s announcement signals a coordinated policy push to integrate digital assets into its financial architecture, combining a proposed State Fund of Digital Assets with a CryptoCity pilot in Alatau. The government aims to balance innovation with regulation, and the next 12–24 months will clarify funding mechanisms, legal frameworks and operational design.
