Kazakhstan plans $2B crypto investment from national reserves

Kazakhstan’s sovereign wealth fund and central bank are considering allocating part of their gold and foreign exchange reserves into cryptocurrencies and crypto-related assets.

Timur Suleimenov, head of the National Bank of Kazakhstan, said the central bank is exploring “aggressive strategies to [generate] higher investment income,” which “does not exclude” crypto funds.

Suleimenov cited sovereign wealth funds in Norway, digital asset holdings by the US government, and initiatives in the Middle East as models for Kazakhstan’s approach.

“These authorities have certain investments either in crypto assets directly or in [exchange-traded funds] and shares of companies that are closely related to crypto assets.” he added.

The central bank also plans to create a national crypto asset reserve using digital assets confiscated by law enforcement agencies.

This strategy expands on earlier plans announced by Suleimenov to develop a national crypto reserve.

Kazakhstan’s government recently launched a pilot zone to support digital asset payments and promote broader adoption.

This pilot is part of a wider strategy that began with the introduction of the digital Tenge, the country’s central bank digital currency, in November 2023.

The government is also working on regulatory frameworks to encourage institutional investment in crypto while managing risks associated with digital assets.

Digital Development Minister Kanysh Tuleushin said these efforts align with Kazakhstan’s goal to become Central Asia’s leading crypto hub.

Despite regulatory and infrastructure progress, local crypto adoption remains limited.

According to Chainalysis’ 2024 Global Crypto Adoption Index, Kazakhstan ranks 57th out of 151 countries based on transaction volumes and other activity metrics.