Kazakhstan President Proposes National Crypto Reserve

Kazakhstan is doubling down on digital assets. In his annual address, President Kassym-Jomart Tokayev laid out a bold strategy that includes creating a national cryptocurrency reserve and fully digitalizing a city to support crypto payments.

A Strategic Crypto Reserve in the Works

Tokayev urged lawmakers to move quickly. He called for a “full-fledged ecosystem of digital assets” to be built out as soon as possible. According to the president, this ecosystem will help return idle bank capital to productive use.

To achieve this, Tokayev has asked the Agency for Regulation and Development of the Financial Market to draft a crypto-focused bill. The goal is to pass it before 2026.

But perhaps the most headline-worthy proposal came next. Tokayev wants to form a State Fund of Digital Assets. This fund, he said, would fall under the National Bank’s Investment Corporation and hold a strategic crypto reserve. The reserve would include promising assets from the emerging digital financial system.

Notably, this isn’t the first time Kazakhstan has explored the idea. Two months ago, local reports indicated that the National Bank was already considering building a reserve using seized crypto assets.

This strategy mirrors a growing global trend. Countries like Brazil and Indonesia have also begun exploring sovereign crypto reserves. Meanwhile, the U.S. under President Trump issued an executive order to include Bitcoin and other digital assets in its national reserves.

Kazakhstan Crypto City: A Fully Digital Pilot Zone

The digital asset vision doesn’t stop there. Tokayev also confirmed plans to build a crypto-forward smart city — now referred to as “CryptoCity.”

Back in May, rumors suggested the city would rise in Alatau, home to about 52,000 people. Tokayev has now confirmed those plans. In his speech, he stated that Alatau will become the first fully digitalized city in the region, where crypto payments will be fully integrated into everyday life.

“This city will represent the future of Kazakhstan,” he declared. “It should combine technological progress and the most favorable living conditions.”

The move could serve as a blueprint for other nations experimenting with crypto in urban infrastructure.

A Mining Powerhouse with Past Challenges

Kazakhstan already plays a major role in the crypto ecosystem, particularly in Bitcoin mining. At one point, the country accounted for roughly 13% of Bitcoin’s global hashrate, thanks to cheap electricity and friendly regulations.

However, the boom came at a cost. The mining frenzy led to widespread illegal operations and power grid stress. These challenges prompted tighter oversight and enforcement in recent years.

Still, Kazakhstan remains a pivotal player in crypto. With the addition of a strategic reserve and digital-first city, it’s positioning itself as a leader in sovereign digital asset adoption.

Global Crypto Adoption In 2025

Country	Key Advancements in Crypto — 2025 Highlights
India	Topped the 2025 Global Crypto Adoption Index. Ranked first across grassroots, centralized, DeFi, and institutional adoption. India’s e‑rupee CBDC pilot became the world’s second-largest, with a 334% circulation increase by March 2025 and expansion continuing nationwide.
United States	Ranked second in crypto adoption. Passed the GENIUS Act to regulate stablecoins. Created the national “Digital Fort Knox” crypto reserve. Regulatory clarity improved with a shift toward mainstream integration.
Pakistan	Launched the Pakistan Crypto Council and Virtual Assets Regulatory Authority. Announced a government-backed Strategic Bitcoin Reserve and dedicated 2,000 MW of energy for crypto mining and AI centers.
United Arab Emirates (UAE)	Continued leadership as a tax-free crypto hub with strong regulation (VARA, ADGM). Introduced new stablecoin frameworks and exchange initiatives.
El Salvador	Maintained status as the first Bitcoin-legal country. Continued geothermal Bitcoin mining, use of national wallet “Chivo”, and tax exemptions on crypto usage.
Switzerland	Maintained its crypto-friendly position with the DLT Act, clear financial regulations, and a stable ecosystem for blockchain startups and institutional investors.
Germany	Advanced MiCA-aligned regulatory framework, provided tax incentives for long-term holding, and supported institutional adoption of digital assets.
Hong Kong	Revamped regulatory approach, began issuing crypto licenses, approved ETFs, and launched a stablecoin licensing system.
Vietnam, Brazil, Nigeria, Ukraine	Ranked in the top 10 of the 2025 global crypto adoption index. Nigeria saw the fastest crypto growth in Africa. Vietnam and Brazil showed strong institutional and grassroots adoption.