Kazakhstan is positioning itself as a Central Asian crypto hub with plans for “CryptoCity,” which aims to facilitate the use of cryptocurrencies in payments.
Kazakhstan becomes the latest country in the world to explore a potential crypto reserve under the regulatory purview of the National Bank of Kazakhstan. Government news agency Kazinform reported that the local authorities are exploring this opportunity while studying the development of a potential crypto reserve, while following international practices.
According to the report, Kazakhstan will be funding these reserves typically through seized digital assets and state-operated cryptocurrency mining activities. Timur Suleimenov, Chairman of the National Bank of Kazakhstan, addressed the inherent risks and volatility of crypto assets.
He emphasized that placing the reserves under the supervision of a centralized authority would facilitate proper oversight and risk management. In a May 22 response to a parliamentary inquiry on digital assets, the National Bank expressed support for establishing a state-run crypto reserve. The proposal recommended that the reserve be managed by a subsidiary of the central bank specializing in alternative investments.
Furthermore, last month, Kazakhstan’s president Kassym-Jomart Tokayev unveiled plans for “CryptoCity,” a pilot zone enabling the use of cryptocurrencies for payments for goods and services. Similarly, Kanysh Tuleushin, Kazakhstan’s first vice minister of digital development, stated that streamlined regulations could position the country as a leading crypto hub in Central Asia.
Along with big corporations like MicroStrategy, Metaplanet, and others, several countries and some US states have been exploring crypto reserves. Although demand for altcoins is growing, Bitcoin remains the most preferred asset for these crypto reserves.
Earlier this month, in June, Ukrainian lawmakers introduced a new bill seeking to authorize the National Bank of Ukraine to include digital assets, such as Bitcoin (BTC), in its official reserves, reported CNF. As part of its sovereign reserves, the country is planning to hold Bitcoin along with Gold and foreign currencies as part of its sovereign reserves.
Similarly, Texas Governor Greg Abbott recently signed a bill officially establishing the Texas Strategic Bitcoin Reserve, as mentioned in our previous report. The idea of a national Bitcoin reserve is gaining traction in the US, with Senator Cynthia Lummis revealing that some divisions within the American military back the concept as a safeguard against economic warfare threats.
The positive approach with crypto reserves worldwide comes following the Trump administration taking charge of the White House this year. Trump’s crypto-friendly stance has given global jurisdictions the confidence to explore the asset class and build regulations around its use cases.
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