In his remarks, Tokayev described CryptoCity as a regulated sandbox for experimenting with crypto adoption.
“We are planning to create a pioneering pilot zone called CryptoCity where cryptocurrencies might be used for purchasing goods, services, and even beyond,” he said
The pilot zone is part of a wider strategy to attract technology ventures and capitalize on the growth of its domestic crypto market.
Kazakhstan has been building digital financial infrastructure since launching a central bank digital currency (CBDC) pilot in February 2023. Programmability was a key feature from the beginning, planned to reduce corruption.
That same year, the Center for Interbank Settlements was transformed into the National Payment Corporation, tasked with developing the CBDC platform.
By November 2023, the country had launched the digital tenge in pilot mode with real users, including banks and their clients.
The system used blockchain-based smart contracts to facilitate programmable payments.
Banks involved in the pilot issued digital vouchers and cards to support usage.
The government also partnered with Binance to test CBDC payments with selected merchants. Binance has since expanded its footprint in Kazakhstan with local investments and a digital asset exchange.
Zhaslan Madiyev, Minister of Digital Development, told local media that officials are currently choosing a location for CryptoCity.
“Of course, the most promising place for CryptoCity is the new city of Alatau—it’s the president’s initiative,” he said.
Alatau, a research and technology hub near Kazakhstan’s southeastern border, is already home to a special economic zone and multiple science institutions. Regulators see potential synergies in adding CryptoCity to the area.
“The concept is that cryptocurrency would be used as a means of payment—to pay in restaurants and cafes, buy real estate, and make investments,” Madiyev explained. “I believe this could be a major breakthrough for the blockchain industry.”
According to Madiyev, the city is already under development. The next step is building a legal framework to allow free crypto circulation and establish crypto as a legitimate payment method.
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