Kazakhstan to Establish State Crypto Reserve Under National Bank

Kazakhstan's President Kassym-Jomart Tokayev has ordered the creation of a state digital assets fund to accumulate a strategic cryptocurrency reserve. This initiative aims to bolster the nation's digital asset ecosystem and is part of broader efforts to integrate digital currencies into the financial system. The fund will be established under the investment corporation of the National Bank of Kazakhstan.

Key Takeaways

A state digital assets fund will be created to build a strategic crypto reserve.
The fund will be based within the National Bank of Kazakhstan's investment corporation.
This move is part of a larger strategy to accelerate the development of a digital asset ecosystem.
The digital tenge's use will be expanded across various government financial systems.
New legislation is planned to liberalize digital asset circulation and promote fintech.

Strategic Crypto Reserve Formation

President Tokayev emphasized the need to focus on crypto assets in light of modern financial realities. The newly formed State Fund for Digital Assets will be tasked with accumulating a strategic reserve from promising digital financial assets. This initiative is a significant step towards formalizing Kazakhstan's engagement with cryptocurrencies and leveraging their potential within the national economy.

Expansion of Digital Tenge

In parallel with the crypto reserve, Kazakhstan plans to broaden the application of its central bank digital currency (CBDC), the digital tenge. Its use will be extended beyond National Fund projects to include republican and local budgets, as well as the financial systems of state holdings. The National Bank has been actively developing the digital tenge, with pilot testing showing positive results, including a reduction in VAT return periods.

Investment and Fintech Initiatives

President Tokayev also directed the government and the National Bank to develop a program for investing up to $1 billion in high-tech sectors of the economy. To facilitate this, banks will be more actively involved in financing the real sector, addressing the current trend where banks favor low-risk instruments over lending. A key legislative step will be the adoption of a new banking law by the end of the year, which will include provisions for liberalizing digital asset circulation and promoting fintech advancements. This law aims to enhance competition and attract new participants to the market.

Addressing Digital Risks

While embracing digitalization, President Tokayev also highlighted the risks associated with it, particularly the rise in online fraud. He stressed the importance of building an intelligent system to combat cybercrime and called for necessary adjustments to legislation and law enforcement practices to ensure financial security.

Sources

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