Kassym-Jomart Tokayev, the president of the Republic of Kazakhstan, laid out plans for the country’s AI and digital asset endeavours, which include a strategic cryptocurrency reserve.
In an annual address on Monday, Tokayev said the government should create a “full-fledged ecosystem of digital assets as soon as possible” as part of efforts to “find effective ways to maximize the return of bank money to the economy.”
He proposed having the country’s Agency for Regulation and Development of the Financial Market draft a law to this effect to be passed before 2026.
Plans for a national crypto reserve were also on the president’s agenda:
Tokayev’s announcement came about two months after reports suggested Kazakhstan’s national bank was considering a national crypto reserve funded by seized digital assets.
Several countries, including Brazil and Indonesia, have reportedly been exploring ways to set up a strategic digital asset reserve following the United States’ creation of a crypto reserve that would include Bitcoin (BTC) and other digital assets under an executive order by President Donald Trump.
Related: Brazil’s lower house to hold hearing on creating national Bitcoin reserve
The next step in Kazakhstan’s “CryptoCity” plans?
In May, Tokayev said the Kazakhstan government was planning to create a pilot zone in which crypto could be used to pay for goods and services. At the time, reports speculated the so-called “CryptoCity” would be set up in Alatau, a city of about 52,000 people in the southeastern area of Kazakhstan.
The president seemed to confirm these reports on Monday in his speech, saying Alatau would become “the first fully digitalized city in the region,” utilizing crypto payments.
“This city will represent the future of Kazakhstan,” said Tokayev. “It should combine technological progress and the most favorable living conditions.”
Kazakhstan is one of the world’s most significant hubs for BTC mining, likely due to its favorable regulatory environment and low electricity costs.
However, the incentive to mine crypto — with the country accounting for about 13% of Bitcoin’s global hashrate at its peak — led to a surge in illegal operations and a strain on the country’s power grid.
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Source: https://cointelegraph.com/news/kazakhstan-president-crypto-reserve-plans?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
