Key Takeaways
- Kazakhstan launches CryptoCity pilot zone for real-world cryptocurrency payments, aiming to attract global developers and boost the digital economy.
- The National Bank of Kazakhstan also launched a “crypto card” retail payment initiative to encourage the growth of regulated digital finance.
- The Kazakh government supports blockchain innovation with AI and supercomputing technology.
Kazakhstan has made a bold move into the future of digital finance by unveiling plans for a “CryptoCity,” a special pilot zone where people can use cryptocurrencies for real-world transactions.
According to an announcement by the country’s president, Kassym-Jomart Tokayev, during the Astana International Forum 2025, the digital asset pilot zone would be used to test the viability of mainstream adoption as the country marches toward full-scale digitalization.
Sandbox for the Study of Cryptocurrencies
Once launched, individuals and corporations will have the freedom to buy, sell, and hold cryptocurrencies without restrictions. Moreover, the government will allow the use of cryptocurrencies to pay for goods and services within CryptoCity. President Tokayev said:
“We are planning to create a pioneering pilot zone called CryptoCity where cryptocurrencies might be used for purchasing goods, services, and beyond.”
The official statement from the president’s office clarified that the pilot zone would be located in Alatau and would serve as a sandbox for studying cryptocurrencies and their applications in everyday activities. Crypto enthusiasts will be allowed to engage in all forms of transactions, including buying and selling real estate. The move aligns with Kazakhstan’s broader plans to advance in innovation and digital development.
According to the president, CryptoCity will also be used to explore how the government can regulate digital assets, adding that experimentation will lead to the real-world use of cryptocurrencies in regular commercial activities as the government works on making its ecosystem welcoming for blockchain.
Make Retail Payments Using Cryptocurrencies
CryptoCity isn’t the only digital asset initiative that Kazakhstan is promoting as the country seeks to become a regional cryptocurrency hub, in addition to enhancing its Bitcoin mining operations. Last week, the National Bank of Kazakhstan launched a “Crypto Card” retail payments initiative aimed at encouraging the growth of regulated digital finance.
The Crypto Card initiative aims to link consumers’ licensed cryptocurrency wallets with traditional payment cards, enabling users to make retail payments using cryptocurrencies. As merchants receive their money in the form of conventional Kazakh fiat currency, the Tenge, this initiative facilitates seamless transactions. According to a statement by the National Bank of Kazakhstan:
“The initiative provides the ability to securely and conveniently integrate the turnover of digital assets into the existing payment infrastructure.”
Conclusion
The move by Kazakhstan to unveil “CryptoCity” and launch a “Crypto Card” happens when statistics show that stablecoin payment volumes have been headed toward the $100 billion mark since 2023, driven by a raft of factors. A report by data analytics firm Artemis shows that $94 billion worth of stablecoin payments were processed between the start of 2023 and February 2024. Compared to the figures before 2023, stablecoin transaction volumes have surged nearly threefold, driven by shifting consumer behavior and innovation.
Frequently Asked Questions
Is crypto allowed in Kazakhstan?
Digital Assets in the Republic of Kazakhstan are in force. It legalized crypto mining and provided licenses to some registered cryptocurrency exchanges as the government encouraged the use of digital assets.
What is the proposed CryptoCity all about?
The CryptoCity project aligns with the government of Kazakhstan’s ambition to establish a legal framework that allows the free circulation of cryptocurrencies within the zone.
Is crypto trading allowed in Islam?
As long as there is no illegal activity, then trading or investing in crypto should not be deemed to be contrary to Shariah principles. There has been some discussion amongst Muslim scholars around the use of cryptocurrencies for illegal activities such as gambling, drugs, and money laundering.
