The Central Bank of Kazakhstan will establish a state-managed cryptocurrency reserve, with funds possibly coming from confiscated digital assets and government-related cryptocurrency mining.
According to a report from government news agency Kazinform on Monday, the National Bank of Kazakhstan plans to establish a state-managed cryptocurrency reserve.
Local authorities are studying the development of cryptocurrency reserves, which will follow international practices. Reports indicate that such reserves are typically funded by confiscated digital assets and state-owned cryptocurrency mining operations.
Timur Suleimenov, Chairman of the National Bank of Kazakhstan, acknowledged the volatility and associated risks of crypto assets. He stated that placing reserves under the control of a central authority can ensure proper regulation and risk management.
In a response to parliament regarding digital assets on May 22, the National Bank also stated that it supports the establishment of a state-managed cryptocurrency reserve. The document suggested that the reserve could be managed by a subsidiary of the national bank focused on alternative investments.
Kazakhstan bets on cryptocurrency
This is the latest report in Kazakhstan's series on advancing cryptocurrency adoption. In May of this year, President Kassym-Jomart Tokayev announced plans to launch 'CryptoCity,' a pilot zone allowing cryptocurrency payments for goods and services.
Kazakhstan's First Deputy Minister of Digital Development Kanysh Tuleushin stated in May that with regulatory simplifications, Kazakhstan is expected to become the leading cryptocurrency center in Central Asia.
Meanwhile, relevant authorities are strengthening law enforcement, having cracked down on 36 illegal cryptocurrency exchanges in 2024. Officials stated that this move is aimed at curbing money laundering activities and enhancing financial regulation.
National cryptocurrency reserves are increasingly popular
State-managed cryptocurrency reserves are becoming increasingly popular worldwide; however, such projects usually only consider Bitcoin (BTC) as an option. Last week, spokesperson for India's ruling party BJP, Pradeep Bhandari, called for the initiation of a Bitcoin reserve pilot and proposed clear guidance on the country's cryptocurrency policy.
Earlier this month, Texas Governor Greg Abbott signed a bill officially authorizing the establishment of a Texas strategic Bitcoin reserve. These two initiatives both follow the example of the U.S. strategic Bitcoin reserve.
The United States is also gaining more attention on this concept. U.S. Senator Cynthia Lummis recently stated that certain branches of the U.S. military support the establishment of a national Bitcoin reserve to address economic warfare threats.
Source: https://cn.cointelegraph.com/news/kazakhstan-establishes-a-national-crypto-reserve