The Central Asian nation is positioned as a leader in the adoption of the cryptocurrency government.
Kazakhstan makes daring movements in the world of digital currency. President Kassym-Jomart Tokayev recently Announced plans To create a cryptocurrency fund supported by the government and build the first entirely digital city in the world where people can pay for everything with the crypto.
This places Kazakhstan in front of major countries that still debate the question of whether their governments should invest in digital assets.
The government creates a strategic cryptography reserve
Kazakhstan plans to establish a national digital asset fund through its national bank investment company. This fund will collect what the president calls “promising assets” in the new digital financial system.
The crypto reserve will come from two main sources. First, the authorities will use the digital currencies entered during criminal surveys. Second, the country will add cryptocurrencies from the state-controlled mining operations. Kazakhstan currently represents about 13-14% of the global operation of Bitcoin Hashrate, although this decreased by its peak by 27.3% in October 2021.
Kazakhstan has important financial resources to support this initiative. The national fund has about 60 billion dollars, mainly petroleum income. Another state fund called Samruk-Kazyna manages $ 74 billion in state companies. The total international reserves of the country reached $ 104.7 billion in 2024.
Cryptocicity takes shape in Alatau
The president confirmed plans For “cryptocity” in Alatau, a city in the southeast of around 52,000 inhabitants. This pilot area will allow residents and businesses to use cryptocurrency for daily purchases such as grocery store, services and even goods.
Alatau offers unique advantages for this experience. The city was created in 1957 as a research center and shelters major scientific institutions, including nuclear research facilities and a special economic area of the innovation technology park.
“This city will represent the future of Kazakhstan,” said President Tokayev in his annual speech. The objective is to create the first entirely digitized city in the region where cryptographic payments become normal.
The cryptocicity project will work as a regulated sandbox. This means that the authorities can test the use of cryptocurrencies under real world conditions while maintaining surveillance to protect users and ensure compliance.
Digital Tenge shows early success
The digital currency of the Central Bank of Kazakhstan (CBDC), called Digital Tenge, already shows promising results. The National Bank successfully launched pilot projects using the digital currency for the financing of the government in 2024.
Digital Tenge has helped finance the construction of the Dostyk-Moynty railway project. However, the Figure of 238 billion tenge ($ 467.8 million) previously referenced concerns the funding of the national fund infrastructure, not specifically of digital transactions.
Digital currency works with the main payment networks such as visa and mastercard. Users can store it in plastic cards and use it via digital wallets like Apple Pay and Samsung Pay. The system has also reduced waiting times for value added tax reimbursements.
Kazakhstan is expecting a complete implementation of digital Tenge by the end of 2025. This will include offline payment capacities for areas with limited internet access and cross -border transaction features.
A strong legal framework supports growth
Kazakhstan has built complete laws for digital assets, unlike many countries still working on cryptographic regulations. The government adopted the law on digital assets in April 2023, creating clear rules for the use of cryptocurrencies.
Astana International Financial Center (AIFC) is a special economic area where cryptographic trading is legal and regulated. The negotiation volume via AIFC license scholarships increased from $ 324 million in 2023 to $ 1.4 billion in 2024.
In September 2025, Kazakhstan became the first country in Central Asia to allow regulated businesses to pay government fees using Stablecoins such as USDT and USDC. This pilot program demonstrates the country’s commitment to the practical integration of cryptography.
The government maintains strict controls to prevent illegal activity. The authorities closed 36 Crypto exchanges without license in 2024 and oblige minors to sell 75% of their digital assets via approved platforms.
Regional leadership in digital finance
Kazakhstan follows international trends while establishing regional leadership. Several countries, including Brazil and Indonesia, explore the strategic reserves of digital assets after the United States has created plans for a cryptography reserve under President Trump.
The country launched the first ETF of Bitcoin in Central Asia in August 2024. Managers believe that these initiatives will attract developers, programmers and IT specialists to stimulate economic growth.
The approach of Kazakhstan balances innovation with regulations. The government prohibits the use of cryptocurrencies for regular national payments while creating controlled environments such as AIFC and the cryptocicity provided for tests and development.
Building the digital economy of tomorrow
Kazakhstan plans to adopt complete legislation on digital assets by 2026. This chronology is aligned with the complete deployment of digital tens and the development of cryptocicity in Alatau.
The country’s strategy combines three key elements: government cryptography reserves, the practical implementation of CBDC and real world tests thanks to the development of the smart city. This complete approach positions Kazakhstan as a model for other emerging markets by considering similar digital financing initiatives.
With proven technology, solid legal frameworks and clear political support, Kazakhstan builds the basics of generalized cryptocurrency adoption while maintaining the necessary surveillance for financial stability.
