Kazakhstan is set to establish a state fund for digital assets to accumulate a strategic cryptocurrency reserve, as announced by President Kassym-Jomart Tokayev.
The fund will be created under the investment corporation of the National Bank of Kazakhstan. Authorities have included this initiative in a list of directives aimed at accelerating the creation of a digital asset ecosystem.
Previously, the country supported the idea of a reserve from confiscated bitcoins. Timur Suleimenov, Chairman of the National Bank, noted that transferring assets under the control of a centralized institution would ensure proper oversight and risk management.
In March, Nurkhat Kushimov, General Manager of Binance Kazakhstan, stated in an interview with ForkLog that the republic has a “very solid foundation” for creating a bitcoin reserve due to advanced crypto regulation.
Digital Tenge
Simultaneously, the government will work on expanding the use of the digital tenge—not only in National Fund projects but also in the financial systems at the republican and local levels, as well as in state holdings.
In July, Suleimenov mentioned that the platform for Kazakhstan’s CBDC would be fully launched in December. He stated that currently, 257.5 billion digital tenge are in circulation.
Pilot testing of the virtual form of the national currency has successfully covered more than ten different areas. Notably, the introduction of the digital tenge reduced the VAT refund period from 75 to five working days.
The National Bank of Kazakhstan began exploring the possibility of implementing a CBDC in 2020. In December 2021, the regulator reported the first results of the digital tenge pilot project.
Other Directives from Tokayev
Tokayev instructed the cabinet and the National Bank to develop an investment program in high-tech sectors of the economy worth up to $1 billion. To finance the real sector, there are plans to more actively involve second-tier banks, whose liquidity is currently directed towards low-risk instruments.
A key step will be the adoption of a banking law by the end of the year, which will provide for the liberalization of digital asset circulation and the promotion of fintech.
The president highlighted the risks of total digitalization, pointing to the rise in online fraud as a threat to financial security.
“It is necessary to build an intelligent system to counter cybercrime. If necessary, adjustments should be made to legislation and the practices of law enforcement agencies,” he added.
Tokayev also announced the launch of the Al-Sana program, aimed at involving up to 100,000 students in high-tech projects. Educational materials on the basics of artificial intelligence will be developed for schoolchildren, and teachers will undergo special training to work with AI tools.
“Competence in the field of artificial intelligence should begin at school,” said the president of Kazakhstan.
A digital platform called Qazaq Digital Mektebi will be established in the country. Schoolchildren, even from sparsely populated villages, will be able to explore AI opportunities through distance learning.
Kazakhstan’s Cryptocurrency Market
In May, Kazakhstan’s authorities expressed interest in the potential billions in taxes from the cryptocurrency market.
The First Vice Minister of Kazakhstan stated that the legalization and regulation of mining and trading digital assets across the country (not just in the AIFC) would allow the country to become a regional crypto hub, attract major players, and significantly increase budget revenues.
Around the same time, the National Bank developed legislative amendments that establish the legal status of cryptocurrency exchange operators and introduce licensing for their activities.
In June, Kazakhstan launched the issuance of cryptocurrency cards linked to wallets on exchanges licensed in the AIFC. According to the latest data, over 4,000 companies from more than 80 countries are registered in the financial center. These firms provide banking, insurance, investment, trading, and other services.
On August 13, the Astana International Exchange (AIX) began trading the first spot bitcoin ETF in Central Asia under the ticker BETF. In early September, Kazakhstan permitted the payment of regulatory fees in stablecoins.