Main Points ：
- President Tokayev proposes establishing a State Crypto Reserve Fund under the National Bank’s Investment Corporation by 2026.
- A full digital asset ecosystem is targeted, with a digital asset law to be drafted and passed before 2026.
- Alatau City will become the region’s first fully digitalized city—dubbed “CryptoCity”—enabling cryptocurrency payments and Smart City tech.
- Expansion of the digital tenge and integration into national budgets.
- Broader digital and AI institutional reforms underway, including a Digital Code and dedicated AI ministry.
- The strategy aligns with Kazakhstan’s ambition to become a leading global crypto and fintech hub.
1. Creating a National Crypto Reserve Fund
President Kassym-Jomart Tokayev announced in his state-of-nation address a landmark proposal: to establish a State Fund of Digital Assets, housed under the National Bank’s Investment Corporation. This fund would accumulate a strategic reserve of “promising assets” within a modern digital financial system.
Legislation will be drafted by the Financial Markets Regulation and Development Agency to underpin this initiative, with the aim of passing the law by 2026.
This move echoes similar trends globally, as seen in the United States (e.g., a federal Bitcoin reserve), and Brazil and Indonesia are likewise exploring crypto reserve strategies.
2. Building a Full Digital Asset Ecosystem
The president emphasized the need for Kazakhstan to quickly establish a fully integrated digital asset ecosystem to channel bank liquidity into the real economy.
A complementary banking law is to be passed—expected by year-end—that will liberalize digital asset circulation, boost fintech competition, and invite new participants to the market.
3. CryptoCity — Alatau, Kazakhstan’s Digital Frontier
Tokayev confirmed plans for “CryptoCity” in Alatau, envisioned as the first fully digitalized city in the region, where crypto payments are integrated into daily life.
Alatau has received land allocation, initial planning, and key infrastructure setup; a draft decree to grant the city a special legal status under direct government oversight is due within ten days, and a dedicated law detailing its governance and financial model will follow within six months.
Alatau’s master plan spans over 80,000 hectares, blending industrial, scientific, agro-logistics, and urban infrastructure—and will serve as a regional innovation hub.
4. Expanding the Digital Tenge
Kazakhstan has already been piloting its central bank digital currency (CBDC), the digital tenge, with implementation expanding into state and local budgets. The digital tenge will be more deeply integrated into National Fund projects and government financial operations.
5. Institutional and Legislative Foundations: AI & Digitalization Push
Beyond digital assets, Tokayev prioritized digital transformation and AI integration across governance and the economy.
A new ministry dedicated to AI—led by a Deputy Prime Minister—will be formed, presumably based on the existing Ministry of Digital Development, and a Digital Code will define the legal framework for AI, big data, platform economy, and fintech regulations.
6. Energy & Infrastructure Considerations
Kazakhstan has long been a major Bitcoin mining hub, largely due to its cheap energy and flexible regulation, at one point contributing up to 13% of global Bitcoin hashrate. Previously, rapid growth in mining strained the national power grid—sparking energy reforms and efficiency drives under Tokayev’s leadership.
Conclusion
Kazakhstan is making a decisive stride into the evolving world of digital finance. From launching a strategic crypto reserve fund and crafting a full-fledged digital asset ecosystem, to building a forward-looking CryptoCity and embedding AI through legislative frameworks—the country is aligning its policies with rapid technological transformation. The integration of the digital tenge, AI governance structures, and enhanced fintech regulations further underline its ambition to become a regional—and potentially global—leader in blockchain innovation and digital economy.
