The National Bank of Kazakhstan is considering establishing a state-managed cryptocurrency reserve, according to a report by government news agency Kazinform dated May 22.
National Bank Chairman Timur Suleimenov stated the central bank supports this initiative, believing centralized oversight would manage the significant volatility and risks inherent in crypto assets. The proposed reserve would likely be funded through expropriated digital assets and state-operated crypto mining, mirroring international practices.
The bank’s position aligns with its earlier, formal response to a parliamentary inquiry on digital assets. Moreover, the potential reserve could be managed by a future national bank subsidiary specializing in alternative investments, the inquiry document suggested.
Kazakhstan bets on crypto
This initiative follows several other steps taken by Kazakh authorities concerning cryptocurrency. President Kassym-Jomart Tokayev announced earlier this year plans for a pilot zone called “CryptoCity,” intended for testing crypto use. Kanysh Tuleushin, Kazakhstan’s first vice minister of digital development, stated the country could become a crypto hub in Central Asia with clearer regulation.
However, there’s also a push for stricter oversight. In 2024, authorities shut down 36 illegal cryptocurrency exchanges, citing aims to combat money laundering.
National crypto reserves grow in popularity
State-run cryptocurrency reserves are increasingly being considered globally, typically focusing initially on Bitcoin. Recently, Texas Governor Greg Abbott signed legislation authorizing such a “Strategic Bitcoin Reserve,” following a similar initiative in the United States. Similarly, India is looking into creating a Bitcoin reserve pilot. Earlier, US Senator Cynthia Lummis noted military branches’ interest in a national reserve for economic warfare mitigation.
