The Kazakhstan National Bank plans to establish a cryptocurrency reserve managed by the State, according to a report Monday of the Kazinform government news agency.
Local authorities are studying the development of a cryptographic reserve, which would follow international practices. As a general rule, these reservations are likely to be funded with expropriated digital assets and cryptography extraction operations managed by the state, according to the report.
The president of the National Bank of Kazakhstan, Timur Suleimenov, recognized volatility and the risks associated with cryptographic assets. He said that placing the reserve under the control of a centralized institution would ensure appropriate surveillance and risk management.
A response from the National Bank to a parliamentary survey concerning digital assets, dated May 22, also said that the Central Bank supported the creation of a crypto reserve managed by the State. The document suggests that it could be managed by a subsidiary of the National Bank specializing in alternative investments.
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Kazakhstan bets on crypto
This is only the last in a series of reports concerning the adoption of cryptocurrencies by Kazakhstan. In May, President Kassym-Jomart Tokayev announced his intention to launch “cryptocity”, a pilot area where cryptocurrencies can be used to pay goods and services.
Kanysh Tuleushin, the first vice-minister of digital development in Kazakhstan, said that in May with easier regulations, the country could become a main crypto center in Central Asia.
At the same time, the authorities are pursuing a stricter application, as shown by the repression of the 36 exchanges of illegal cryptocurrency in 2024. The officials said that repression was to slow money and strengthen financial surveillance.
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Crypto national reserves are gaining popularity
The national cryptocurrency reserves managed by the state gain popularity worldwide, although such initiatives generally consider that Bitcoin (BTC) as an option. Last week, Pradeep Bhandari, spokesperson for the BJP party in power of India, called for a Bitcoin reserve pilot and clarity on the country’s approach to crypto.
Earlier this month, the Governor of Texas, Greg Abbott, signed a bill officially authorizing the creation of the Texas Bitcoin Strategic Reserve. The two initiatives follow the American Bitcoin Strategic Reserve.
The United States is also increasing the momentum behind the idea. American senator Cynthia Lummis recently declared that certain divisions within the US military support the idea of a Bitcoin national reserve to mitigate the threats of economic war.
Review: American risks are “front run” on the Bitcoin reserve by other nations: Samson Mow
