Kazakhstan sets up state cryptocurrency reserve under the supervision of the central bank
Kazakhstan takes an important step towards integrating digital assets into his national financial strategy and plans to set up a state-managed crypto reserve.
The initiative was confirmed by Timur Suleimenov, the Chairman of the National Bank of Kazakhstan, in response to an official request from a MP.
Institutional framework in development
According to Suleimenov, the concept for the formation and management of the crypto reserve is currently being extensively examined. The reserve would be developed under the supervision of a subsidiary of the National Bank to ensure that it corresponds to the global standards for the administration of state assets.
The proposed Frame plan emphasizes institutional strict, transparency in the accounting and custody of crypto assets and sustainable long-term administrative practices. Kazakhstan wants to align his strategy for crypto reserves at the best international practices of sovereign funds, including those that are currently examining or holding digital assets.
Sources of the reserve: mining and expropriation
The reserve can be financed through various channels, including cryptocurrencies that are geared into by state-based companies, and expropriated crypto-assets. This approach reflects strategies that can be observed in emerging countries, where state-supported mining activities and the legal confiscation of digital assets are consolidated under a centralized financial control.
Centralization for security and stability
Suleimenov emphasized the need for centralized institutional control due to the inherent volatility and the cyber security risks associated with crypto assets. By consolidating the supervision and storage under a centralized structure, Kazakhstan wants to protect its digital reserves from market shocks and external threats.
The central bank considers this centralized, regulated approach to the successful and safe integration of digital assets in the national reserves while simultaneously maintaining the accountability and operational resistance.
