Kassym-Jomart Tokayev, the President of Kazakhstan, recently unveiled ambitious plans for the country’s cryptocurrency landscape during his annual address on Monday. As part of a broader effort to foster a robust digital asset ecosystem, Tokayev announced the intention to establish a strategic cryptocurrency reserve that will include “promising assets.” This initiative is expected to be fully operational by 2026 and aims to enhance the efficiency of monetary returns in the national economy.
The President emphasized the urgency of creating a “full-fledged ecosystem of digital assets” to maximize the potential of bank money in Kazakhstan. To this end, he called upon the country’s Agency for Regulation and Development of the Financial Market to draft a comprehensive law that would facilitate these developments. This legislation is anticipated to be passed prior to the 2026 deadline, laying the groundwork for a more structured approach to digital assets.
Tokayev’s announcement regarding a national crypto reserve follows reports from earlier this year suggesting that Kazakhstan’s national bank was contemplating the establishment of such a reserve, potentially funded by seized digital assets. This move aligns with a global trend where several nations, including Brazil and Indonesia, are exploring similar strategies in the wake of the United States’ creation of a crypto reserve that encompasses Bitcoin (BTC) and other digital assets.
“This city will represent the future of Kazakhstan,” said Tokayev. “It should combine technological progress and the most favorable living conditions.”
In conjunction with the crypto reserve, Tokayev also detailed plans for a pilot project that aims to integrate cryptocurrency payments for goods and services in a newly proposed “CryptoCity” in Alatau. This city, home to approximately 52,000 residents, is poised to become the first fully digitalized urban area in the region. The initiative reflects Kazakhstan’s ambition to position itself as a leader in the digital economy, fostering an environment where technological advancements can thrive.
Kazakhstan has emerged as a significant hub for Bitcoin mining, attributed to its favorable regulatory framework and low electricity costs. At its peak, the country accounted for around 13% of Bitcoin’s global hashrate. However, this surge in mining activity has also led to challenges, including an increase in illegal operations and pressure on the national power grid.
As 2025 unfolds, all eyes will be on Kazakhstan as it endeavors to transform its cryptocurrency landscape. With its strategic initiatives and the establishment of a crypto reserve, the nation aims to not only enhance its economic framework but also to create a pioneering digital asset ecosystem that could serve as a model for other countries.
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