Kazakhstan President Proposes State-Backed Crypto Fund Comprising ‘Promising’ Assets

Kazakhstan President Kassym-Jomart Tokayev has pushed his plan to form a “full-fledged” crypto ecosystem by creating a state-backed reserve fund.

“It is advisable to create a State Fund of Digital Assets on the basis of the National Bank’s Investment Corporation,” he said in his annual address on Monday.

He said that the structure will accumulate a strategic crypto reserve consisting of “promising assets.”

Tokayev has urged the government to review tax incentives for investors, adding that “priority should be given to projects that are significant and beneficial to the country’s economy.”

President Tokayev’s $1B Plan in High-Tech and Fintech Sectors

Besides, the President announced plans for up to $1 billion in a program aimed at fostering technological growth. “The Government should prepare it jointly with the National Bank,” he noted.

Further, he called on second-tier banks to actively invest in the real sector, stressing the initiative should start immediately.

President Tokayev also said that it is important for the National Bank and the Kazakh government to find effective ways to maximise the amount of money banks can put into the economy.

Such laws should address “issues of attracting new market participants, promoting technologies in the financial system, and liberalizing the circulation of digital assets.”

Introduction of Digital Tenge

President Tokayev pledged to expand the digital tenge, which is already being used for financing projects through the National Fund.

“The digital tenge can be used in the republican and local budgets, as well as in the budgets of state holdings,” he added.

Furthermore, he stressed the benefits of mass digitization, at the same time warning about cybersecurity risks. The President pointed to the increasing threat of online fraud and the creation of an anti-fraud centre to combat cybercrimes.

“It is necessary to create a more intelligent system that will allow for the prevention of cybercrime,” he said.