Kazakhstan is set to establish a national cryptocurrency reserve fund valued between $500 million and $1 billion, primarily utilizing assets that have been seized and repatriated from abroad.
Kazakhstan’s Deputy Chairman of the National Bank, Berik Sholpankulov, further clarified the government’s strategy, revealing that they are considering using some of the National Fund’s assets, as well as gold and foreign exchange reserves, for investments linked to crypto assets.
Sholpankulov noted that any such investment activities would be managed exclusively through a state-run digital asset fund, which is currently under discussion.
Additionally, he mentioned a proposal from the Ministry of Digital Development to allow state-owned mining companies to provide energy to private mining operations in exchange for payment in virtual currencies.
The government is also exploring the establishment of licensed crypto banks and a national cryptocurrency exchange to foster a regulated environment for digital asset trading in Kazakhstan.
However, Sholpankulov noted that around $15 billion in cryptocurrency has reportedly exited the country due to regulatory gaps surrounding digital assets.
At the time of writing, Bitcoin (BTC) was trading at $100,820, marking a notable 9% decline over the past week. This puts the leading cryptocurrency 20% below its all-time high of $126,000, which was reached in early October of this year.
Featured image from DALL-E, chart from TradingView.com
