Kazakhstan President proposes crypto reserve fund

Kazakhstan President Kassym-Jomart Tokayev has proposed measures to optimize the use of the National Fund and accelerate the development of a digital asset ecosystem during his annual state-of-the-nation address on Monday

Tokayev also urged the government to review tax incentives for investors, stressing that preferences should be granted selectively and reserved for projects that are economically significant and profitable. He commended the mechanism of investment agreements, noting its proven efficiency in attracting capital.

Focusing on new opportunities, President Tokayev emphasized the need to redefine the role of the National Fund as a tool for sustainable development.

“The Fund’s resources should be used thoughtfully to finance promising small-scale projects with strong market potential within our country,” he said, adding that international asset managers and investors could be involved to ensure high-quality expertise.

Tokayev stressed the importance of attracting capital into high-tech sectors, instructing the government and the National Bank to design an investment program worth up to $1 billion aimed at fostering technological growth.

He also called for greater involvement of second-tier banks in financing the real economy. Tokayev noted that many Kazakh banks prefer investing in low-risk financial instruments rather than lending to businesses, which slows economic diversification.

Tokayev underscored the need to accelerate the formation of a comprehensive digital asset ecosystem in Kazakhstan. He highlighted the introduction of the digital tenge, already being used for financing projects through the National Fund.

The President also emphasized the accelerated adoption of the new Digital Code, which will regulate digital platforms, data, cybersecurity, and emerging technologies; Launch of a State Digital Assets Fund (Crypto Reserve): A sovereign fund for digital assets will be created to manage and accumulate crypto-reserves as part of the national financial system.

The fund would accumulate a strategic crypto reserve comprising promising digital assets within the evolving financial landscape.

At the same time, he warned about cybersecurity risks associated with digitalization. He pointed to the rising threat of online fraud and stressed the need for advanced technological solutions to combat financial cybercrime.

Tokayev’s Address also focused on Creation of a Ministry of Artificial Intelligence: Kazakhstan will establish a dedicated Ministry of AI to coordinate national strategies in artificial intelligence, digital transformation, and advanced technologies.

A new banking law is to be introduced by the end of the year to strengthen regulation, transparency, and resilience of Kazakhstan’s financial system. Alatau-City Project: Announcement of Alatau-City, a fully digital “smart city” designed as a hub for innovation, advanced digital infrastructure, and high-tech business development.

Tokayev stressed the need to diversify the economy, support domestic production with high added value, and integrate Kazakhstan into global technological chains. He underlined food, energy, and transport security as strategic priorities for sustainable national development.

Tokayev proposed to hold a national referendum in 2027 on transitioning to a unicameral parliament, which would mean abolishing the Senate (the upper chamber) of Kazakhstan’s Parliament.

Tokayev emphasized that the bicameral system, introduced in 1995 during a period of political instability, had fulfilled its stabilizing role. Now, he argued, Kazakhstan needs a more rational and streamlined parliamentary model. If adopted, the unicameral parliament would consist of deputies elected only from party lists, marking a return to a single-chamber system.