The president of Kazakstan, wants a state digital asset fund, cryptographic payments at Smart City

The president of Kazakhstan, Kassym-Jomart Tokayev has proposed the creation of a State Fund of Digital Assets, a new institution designed to consolidate the role of the country in the digital finance sector. The initiative was presented during its annual speech of the State of the Nation on Monday.

“Given the demands of the modern era, it is necessary to focus on the Cryptoase Bases. It is advisable to create a state fund of digital assets based on the National Bank’s Investment Corporation,” said Tokayev. “This structure will accumulate a strategic encryption reserve consisting of promising assets in the new digital financial system.”

The announcement reflects the cryptocurrency growth scale in Kazakhstan. A KPMG Caucaso and Asia Central report showed that cryptography ownership doubled from 4% in 2022 to 8% nationwide in 2024. License suppliers under the Astana International Financial Center contributed $ 367,000 in taxes in the first eight months of 2024, compared to $ 275,000 in 2023.

Meanwhile, cryptographic mining $ 10.4 million was added in taxes for ten months, after generating $ 16.4 million the previous year. Kazakhstan jumped to world prominence in Bitcoin mining in 2021 after China’s ban, although much of the activity remains without a license.

The Government’s digital finance agenda includes the consideration of investing national reserves in cryptocurrencyMaking movements from countries like Bután. The president of the United States, Donald Trump, has also declared that he plans to launch a strategic reserve for cryptography.

Tokayev emphasized the risks along with the opportunities. “In recent years, online fraud has caused great damage to the financial security of the State and citizens,” he said, citing the creation of an anti-fraud center, biometric identification systems and greater supervision of banks and telecommunications. He added that preventing cyber crime will require continuous updates to the legislation and the capacities of application of the law.

Kazakstan’s intelligent city ambitions

The president also linked digital finances with Kazakhstan urban development ambitions. The plans for the city of Alatau, a new “intelligent city” near Almath, include first digital infrastructure.

Imagined as a Finance, Education, Logistics and Leisure Center, the $ 7.2 billion project aims to grow from a population of 52,000 to two million residents.

“The city of Alatau should become the first totally digitized city in the region,” said Tokayev, adding that “it should introduce everything, from the use of intelligent city technologies to pay goods and services with cryptocurrencies.”