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Kazakhstan Plans to Establish Asia’s First Smart City and Digital Asset Fund

Smart City

Business Honor
11 September, 2025

Kazakhstan will launch a crypto fund and build Alatau City, a complete digital smart city with blockchain services and cashless payments.

Kazakhstan is making major efforts to increase its role in the worldwide crypto economy as it moves into the digital future. To improve the nation's position in the digital financial industry, President Kassym-Jomart Tokayev suggested creating a State Fund of Digital Assets. The fund that will be set up under the National Bank’s Investment Corporation will include digital currencies and cryptocurrency as a critical reserve.

The announcement aligns with Kazakhstan's increasing acceptance of cryptocurrencies. Crypto ownership increased from 4% in 2022 to 8% in 2024, according to the KPMG report. Taxes paid for licensed cryptocurrency businesses under the Astana International Financial Center also increased from $275,000 in 2023 to $367,000 in 2024. "We must focus on cryptoassets because of the needs of the current era," Tokayev stated in his yearly state of the nation speech.

In line with worldwide trends, Tokayev also revealed that Kazakhstan has considered dedicating a portion of its national reserves to cryptocurrencies. But he stressed the importance of protecting the public from cybercrime and online fraud. The authorities are working on new fraud laws, more regulation of banks and telecoms, and biometric ID systems.

Tokayev highlighted the $7.2 billion smart city project named Alatau City, situated close to Almaty. Alatau will be the first fully digitized city in Central Asia, with smart infrastructure, blockchain services, and electronic payments. It is expected to grow from 52,000 to 2 million people and a center for technology, business, and education. It sets the standard in Central Asia as smart cities and digital banking gain worldwide interest. If Alatau City succeeds, it could serve as the model for how nations worldwide design future cities.