Kazakhstan’s President Eyes National Crypto Reserve and Alatau Smart City

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Signaling Kazakhstan’s wider digital asset ambitions, President Kassym-Jomart Tokayev unveiled plans for a national cryptocurrency reserve and a digital-first “smart city” in Alatau. 

During an annual state of the nation address, Tokayev proposed establishing a State Fund of Digital Assets under the National Bank’s Investment Corporation, saying this fund would “accumulate a strategic crypto reserve of promising assets in the new digital financial system.” 

The president also proposed a comprehensive digital asset ecosystem, instructing the Agency for Regulation and Development of the Financial Market to draft supporting digital asset legislation by 2026.

Meanwhile, Tokayev warned that online fraud has become a growing threat to both Kazakhstan and its citizens’ financial security, pointing to the need for initiatives such as a national anti-fraud center, expanded biometric identification, and stricter oversight of banks and telecom providers.

The address also endorsed plans to develop the city of Alatau in southeastern Kazakhstan into a “fully digitized city,” where cryptocurrency could be used for everyday transactions. 

Kazakhstan’s national bank was reported to be considering a national crypto reserve earlier this year, likely to be funded by seized digital assets and government cryptocurrency mining. Kazakhstan’s low electricity costs and crypto-friendly environment make it a hub for cryptocurrency mining, at one point generating approximately 13% of global Bitcoin hashrate.