Kazakhstan is preparing to launch a state-controlled cryptocurrency reserve, as confirmed by the National Bank of Kazakhstan in a recent government report. The move marks a significant step in the country’s evolving crypto strategy, aiming to bring digital assets under official oversight.

The reserve would be managed by a subsidiary of the national bank focused on alternative investments. According to bank chairman Timur Suleimenov, centralized control is crucial to manage crypto’s inherent risks and volatility. Funding for the reserve is expected to come from seized digital assets and earnings from state-run crypto mining operations.

This initiative is part of Kazakhstan’s broader push into the crypto space. In May, President Kassym-Jomart Tokayev revealed plans for “CryptoCity,” a pilot zone where cryptocurrencies could be used for everyday transactions. Officials say the project could position Kazakhstan as a Central Asian crypto hub, especially with streamlined regulations under development.

Despite the pro-crypto stance, authorities are also tightening enforcement. Earlier this year, regulators shut down 36 unlicensed crypto exchanges to curb illegal financial activity and reinforce anti-money laundering protocols.

Kazakhstan joins a growing number of governments exploring national crypto reserves. While Bitcoin remains the favored asset for such initiatives, momentum is building worldwide. India’s ruling party recently proposed a Bitcoin reserve pilot, while Texas has already passed legislation to create its own Bitcoin reserve. At the federal level, U.S. Senator Cynthia Lummis said some military divisions support the idea of holding Bitcoin to counter economic threats.

As nations race to secure digital assets at the state level, Kazakhstan’s move signals a serious commitment to becoming a major player in the global crypto landscape. The creation of a national reserve may just be the beginning.