Kazakhstan President Kassym-Jomart Tokayev has announced the creation of a National Digital Asset Fund and confirmed plans for “CryptoCity” in Alatau, where residents will be able to make everyday payments using cryptocurrencies. In his annual address to the nation, President Tokayev outlined a bold vision for the country’s financial future. A central pillar of this vision is the establishment of the National Digital Asset Fund, to be administered by the Investment Corporation of the National Bank. This state-backed fund will build a strategic reserve of digital assets, focusing on high-potential cryptocurrencies poised for significant growth. Tokayev emphasized that this reserve will be part of Kazakhstan’s new digital financial system. It aims not only to bring bank money back into the economy but also to increase long-term returns. Tokayev Pushes for Digital Asset Legislation To support these initiatives, Tokayev instructed the Agency for Regulation and Development of the Financial Market to prepare a comprehensive law on digital assets. The law is expected to be ready by 2026, paving the way for the regulation of digital assets. It will establish a legal framework for the use, investment, and oversight of cryptocurrency in the country. According to the president, having a clear legal foundation is critical to building trust among investors. It also ensures that Kazakhstan can compete in the rapidly growing global digital asset market. Kazakhstan Advances with CryptoCity in Alatau Building on the national fund and the upcoming legal framework, Tokayev confirmed the creation of "CryptoCity" in Alatau, a town in southeastern Kazakhstan. The project, first hinted at earlier this year, has now been formally included in the government’s roadmap. It is envisioned as a showcase for how digital assets can transform daily life. The government plans to transform Alatau into the region’s first fully digitalized city, enabling residents and businesses to make routine payments with cryptocurrency. From groceries to essential services, transactions will rely on digital assets. “This city will represent the future of Kazakhstan,” Tokayev declared. “It must combine advanced technology with the most favorable living conditions.”  By moving forward with CryptoCity, Kazakhstan demonstrates its intent to evolve from a mining hub into a global leader in digital adoption. Global Trend Toward State-Backed Crypto Reserves Kazakhstan’s move aligns with global trends, as several countries are exploring the creation of national cryptocurrency reserves. The United States, under an executive order signed by President Donald Trump, has advanced plans to hold Bitcoin and other digital assets as part of its strategic reserves. Similarly, Brazil and Indonesia are considering comparable measures. For Kazakhstan, which already holds a strong position in the cryptocurrency industry, establishing a strategic digital asset reserve could strengthen its economic resilience and global standing. Strength in Bitcoin Mining, But With Challenges Kazakhstan is no stranger to cryptocurrency. Over the past few years, the country has emerged as a major hub for Bitcoin mining. At its peak, it contributed roughly 13% of the global Bitcoin hashrate. The country’s relatively low electricity costs and favorable regulations have attracted both local and foreign miners. However, this rapid growth has not come without problems. Authorities have struggled with illegal mining operations that consume vast amounts of power, putting stress on the national grid. Tokayev’s new initiatives indicate a shift from being solely a mining powerhouse. They point toward a broader vision of a comprehensive digital asset economy with stronger regulation and oversight.Kazakhstan President Kassym-Jomart Tokayev has announced the creation of a National Digital Asset Fund and confirmed plans for “CryptoCity” in Alatau, where residents will be able to make everyday payments using cryptocurrencies. In his annual address to the nation, President Tokayev outlined a bold vision for the country’s financial future. A central pillar of this vision is the establishment of the National Digital Asset Fund, to be administered by the Investment Corporation of the National Bank. This state-backed fund will build a strategic reserve of digital assets, focusing on high-potential cryptocurrencies poised for significant growth. Tokayev emphasized that this reserve will be part of Kazakhstan’s new digital financial system. It aims not only to bring bank money back into the economy but also to increase long-term returns. Tokayev Pushes for Digital Asset Legislation To support these initiatives, Tokayev instructed the Agency for Regulation and Development of the Financial Market to prepare a comprehensive law on digital assets. The law is expected to be ready by 2026, paving the way for the regulation of digital assets. It will establish a legal framework for the use, investment, and oversight of cryptocurrency in the country. According to the president, having a clear legal foundation is critical to building trust among investors. It also ensures that Kazakhstan can compete in the rapidly growing global digital asset market. Kazakhstan Advances with CryptoCity in Alatau Building on the national fund and the upcoming legal framework, Tokayev confirmed the creation of "CryptoCity" in Alatau, a town in southeastern Kazakhstan. The project, first hinted at earlier this year, has now been formally included in the government’s roadmap. It is envisioned as a showcase for how digital assets can transform daily life. The government plans to transform Alatau into the region’s first fully digitalized city, enabling residents and businesses to make routine payments with cryptocurrency. From groceries to essential services, transactions will rely on digital assets. “This city will represent the future of Kazakhstan,” Tokayev declared. “It must combine advanced technology with the most favorable living conditions.”  By moving forward with CryptoCity, Kazakhstan demonstrates its intent to evolve from a mining hub into a global leader in digital adoption. Global Trend Toward State-Backed Crypto Reserves Kazakhstan’s move aligns with global trends, as several countries are exploring the creation of national cryptocurrency reserves. The United States, under an executive order signed by President Donald Trump, has advanced plans to hold Bitcoin and other digital assets as part of its strategic reserves. Similarly, Brazil and Indonesia are considering comparable measures. For Kazakhstan, which already holds a strong position in the cryptocurrency industry, establishing a strategic digital asset reserve could strengthen its economic resilience and global standing. Strength in Bitcoin Mining, But With Challenges Kazakhstan is no stranger to cryptocurrency. Over the past few years, the country has emerged as a major hub for Bitcoin mining. At its peak, it contributed roughly 13% of the global Bitcoin hashrate. The country’s relatively low electricity costs and favorable regulations have attracted both local and foreign miners. However, this rapid growth has not come without problems. Authorities have struggled with illegal mining operations that consume vast amounts of power, putting stress on the national grid. Tokayev’s new initiatives indicate a shift from being solely a mining powerhouse. They point toward a broader vision of a comprehensive digital asset economy with stronger regulation and oversight.