The Kazakhstan National Bank plans to establish a Cryptocurrency Reserve administered by the State, according to a Monday report by the Kazinform Government News Agency.
Local authorities are studying the development of an encryption reserve, which would follow international practices. In general, such reservations are probable to be financed with expropriated digital assets and state cryptographic mining operations, according to the report.
The president of the National Bank of Kazakhstan, Timur Suleimenov, recognized the volatility and risks associated with cryptographic assets. He said that placing the reservation under the control of a centralized institution would guarantee adequate supervision and risk management.
An response from the National Bank to a parliamentary investigation on digital assets, dated May 22, also said that the Central Bank supported the creation of a state cryptography reserve. The document suggested that it could be administered by a subsidiary of the National Bank specialized in alternative investments.
Related: El Salvador buys another 12 bitcoin for the country’s reservation despite the IMF agreement
Kazakstan bets on crypto
This is only the last of a series of reports on the adoption of Kazakhstan cryptocurrencies. In May, President Kassym-Jomart Tokayev announced plans to launch “Cryptocity”, a pilot area where cryptocurrencies can be used to pay goods and services.
Kanysh Tuleushin, the first Vice Minister of Digital Development of Kazakhstan, said in May that with a easier regulation, the country could become a main cryptographic center in Central Asia.
At the same time, the authorities are looking for a stricter application, as seen in the repression of 36 illegal cryptocurrency exchanges in 2024. The authorities said the repression was aimed at curbing money laundering and reinforcing financial supervision.
Related: The Cryptographic Assets Reserve Bill lands in the Ukraine Parliament
National encryption reserves grow in popularity
National state cryptocurrency reserves are gaining popularity worldwide, although such initiatives usually only consider Bitcoin (BTC) as an option. Last week, Pradep Bhandari, spokesman for the BJP ruling party of India, asked for a bitcoin reserve pilot and clarity about the country’s approach to cryptography.
Earlier this month, the Governor of Texas, Greg Abbott, signed an official of a bill that authorizes the creation of the Bitcoin Strategic Reserve of Texas. Both initiatives follow the strategic bitcoins reserve of the United States.
The United States is also seeing a growing impulse behind the idea. The American senator Cynthia Lummis recently said that certain divisions within the US army support the idea of a Bitcoin national reserve to mitigate economic war threats.
Magazine: The United States runs the risk of being ‘front’ in Bitcoin reserve for other nations: Samson Mow
