Kazakhstan is actively developing a comprehensive digital economy, including establishing a state-backed crypto reserve and creating a legal framework to regulate digital assets, with legislation targeted for finalization before 2026.

The country is building Alatau City near Almaty as a fully digital innovation hub featuring Smart City technologies and cryptocurrency payments, supported by prepared land and infrastructure, and plans for special governance laws.

President Kassym-Jomart Tokayev announced the creation of a Ministry of Artificial Intelligence and Digital Development, aiming for a fully digital nation within three years, emphasizing AI, big data, and digital strategies.

Reforms in financial legislation are underway to foster competition, adapt banks to technological changes, and support fintech growth, including encouraging lending to innovative businesses.

Kazakhstan has launched alem.cloud, Central Asia’s most powerful supercomputer, to bolster AI research, alongside initiatives like AI education programs and cybersecurity measures.

Kazakhstan is a major Bitcoin mining hub, accounting for about 13% of the global hashrate at its peak, though this has led to illegal activities and strain on the power grid due to low electricity costs and favorable regulations.

The government is undertaking reforms to improve citizens' well-being and resilience amidst geopolitical challenges, including political, infrastructural, and industrial changes.

President Tokayev has called for up to $1 billion in investments into high-tech industries, emphasizing the need for legal reforms to liberalize digital assets and promote fintech, with active participation from domestic banks.

Kazakhstan is developing a Digital Code to outline its digital strategy, including AI, big data, and the platform economy, forming the foundation of the national Digital Qazaqstan initiative.

Recent developments include licensing crypto exchanges, launching Central Asia’s first spot Bitcoin ETF managed by Fonte Capital, and permitting crypto payments in stablecoins, positioning Kazakhstan as a regional digital assets hub.

The National Bank has been piloting a digital tenge CBDC since 2020, with over 257.5 billion digital tenge in circulation as of July, supporting the country’s digital currency ambitions.

Kazakhstan emphasizes AI education and cybersecurity, launching initiatives like the Al-Sana program and the Qazaq Digital Mektebi platform to foster AI literacy and protect digital infrastructure.

The country supports creating a reserve from confiscated bitcoins, managed by a centralized institution for better risk management, as part of its broader digital asset strategy.