The National Bank of Kazakhstan plans to invest part of its gold and foreign exchange reserves and assets of the National Fund of the Republic of Kazakhstan in cryptocurrencies, as well as to launch a state crypto reserve based on confiscated digital assets.
Timur Suleimenov, Chair of the National Bank of Kazakhstan, announced the government’s intention to form alternative portfolios for the gold and foreign exchange reserves and the National Fund, potentially investing in crypto ETFs, shares of crypto companies, and cryptocurrency assets, according to local media.
Suleimenov clarified that a final decision on investments wasn’t yet made due to the high volatility of such assets. However, the National Bank is studying international experience from Norway, the U.S., and Middle Eastern countries, where crypto-assets constitute a small but strategically significant part of sovereign wealth fund portfolios. Kazakhstan’s authorities are considering a similar approach, including possible investments in exchange-traded funds and shares of companies closely related to the crypto industry.
Suleimenov also confirmed the National Bank’s plans to establish a state cryptocurrency reserve. According to him, this reserve will be replenished with digital assets confiscated by law enforcement agencies, as well as assets mined by state or partially state-owned mining entities. Bitcoin is expected to be the primary cryptocurrency for the reserve, as its liquidity and global recognition make it the most obvious choice. However, Suleimenov noted that Ethereum and other cryptocurrencies will also be considered, as the exact list of digital assets suitable for use as a state reserve has not yet been finalized.
Management of the state crypto reserve is planned to be assigned to a specialized subsidiary of the National Bank operating according to sovereign fund standards, with mandatory transparency in accounting, custody, and risk management.
Suleimenov stated that the National Bank is currently conducting a comprehensive study of the initiative and preparing the legal framework for the crypto reserve, developed in cooperation with legislative and law enforcement bodies. The next stage involves drafting amendments to legislation defining the legal status of the crypto reserve, as well as rules for its replenishment, accounting, custody, and use of assets. Suleimenov also mentioned the creation of a regulatory sandbox for testing FinTech solutions and crypto services under the supervision of the National Bank.
Kazakhstan is actively exploring the crypto market and blockchain technologies. This year, the government initiated the introduction of blockchain to the stock market, launched a special pilot zone for using cryptocurrencies in the real economy sector, adopted comprehensive digital asset regulations, conducted successful CBDC trials, and approved the issuance of crypto cards.
