Kazakhstan has started the Alem Crypto Fund, which is its first national crypto reserve. They have chosen BNB as the first digital asset to be used by partnering with Binance Kazakhstan.

The fund was set up by the Ministry of Artificial Intelligence and Digital Development. It is run by Qazaqstan Venture Group and is part of the Astana International Financial Centre.

BNB is becoming important in Kazakhstan’s plan for digital assets

Deputy Prime Minister Zhaslan Madiyev said that the fund is meant to be a trustworthy tool for big investors and an important base for digital government savings. It may also be used for saving at the state level in the future.

BNB is worth more than $138 billion, which makes it one of the most trusted digital currencies in the world.

The token is the main digital money of BNB Chain. It’s used for handling transactions, paying fees, and taking part in decision-making.

Nurkhat Kushimov, the General Manager of Binance Kazakhstan, said that this choice means a “new beginning for recognizing cryptocurrencies in Kazakhstan. ”

The plan is based on President Kassym-Jomart Tokayev’s recent instruction to set up a government-supported crypto reserve fund with the National Bank’s Investment Corporation.

Tokayev suggested building a large reserve of valuable resources and said that up to $1 billion will be available for programs that support technology development in high-tech and financial technology (fintech) industries.

He promised to grow the use of the digital tenge in national and local budgets and to create a center to combat fraud and deal with increasing cybersecurity risks.

How Kazakhstan Created Its Stablecoin and Bitcoin Investment Opportunity

Earlier this month, Kazakhstan allowed payments in stablecoins for regulatory fees during the Astana Finance Days. Bybit was the first exchange to sign a multi-party agreement with the Astana Financial Services Authority.

The system lets people involved with the AIFC and those who want to register pay their fees in U. S dollars Dollar-backed stablecoins that are managed by authorized Digital Asset Service Providers who act as payment agents.

AFSA CEO Evgeniya Bogdanova said the project is “the first of its kind” set of rules for using stablecoins for payments in the area.

In July, the chairman of the National Bank, Timur Suleimenov, announced that they would invest part of Kazakhstan’s gold and foreign money reserves, as well as money from the National Fund, into cryptocurrency-related investments.

The investment plan is similar to what big government funds in Norway, the U. S, and the Middle East are doing. These funds have invested a little in cryptocurrency through ETFs and related stocks.

Suleimenov noted that prices can change a lot, which is worrying, even though there is a chance to make a lot of money. He said, “We don’t have to hurry. ”

Kazakhstan started Central Asia’s first Bitcoin ETF in August. It is called the Fonte Bitcoin ETF and it is being traded on the Astana International Exchange.

The fund managed by Fonte Capital keeps its assets safe in cold storage with BitGo Trust.

The country finished testing its digital currency, called the digital tenge. It will be fully used by the end of 2025, adding to cash and electronic payments as a third type of money.

From Bitcoin Mining Growth to CryptoCity

Kazakhstan started its cryptocurrency journey in 2021 when many Chinese mining companies moved out because of stricter rules in China. This helped Kazakhstan control 27% of the world’s Bitcoin mining. However, problems with their power supply and rules led to a drop to just 4% by 2023.

The country has registered 415,000 mining machines and given out 84 licenses, with 64 currently in use. It has also started the “70/30 project,” where foreign investors pay to improve power stations. This project will put 70% of the power into the electrical grid and 30% for miners, while creating state-supported digital assets that could help boost the country’s crypto reserves.

President Tokayev announced a new project called “CryptoCity” in Alatau. It will be a test area where people can use cryptocurrency for everyday payments in a controlled way.

The suggested cryptocurrency banking system will offer services for exchanging, storing, and handling transactions, while also following rules to prevent money laundering.

Kazakhstan started using cryptocurrency at the same time that other nearby countries are also trying out crypto, especially in tourism and related fields.

Bhutan has teamed up with Binance Pay and DK Bank to set up the world’s first national system for paying for tourism using cryptocurrencies. This means people can use more than 100 different cryptocurrencies to pay for things like airline tickets, visa fees, and hotel stays at over 100 businesses.

In August, Thailand started a program called TouristDigiPay. This program lets foreign visitors change their cryptocurrency into Thai Baht so they can make electronic payments using businesses that follow SEC rules.

Also, France’s Riviera region started using cryptocurrency payments in more than 80 businesses. This was done through a partnership between Binance Pay and a fintech company called Lyzi. These businesses include hotels, restaurants, and high-end shops in Cannes.

Nice, Antibes, and Monaco.