Kazakhstan Diversifies From Gold, Plans to Invest in Crypto by May

Kazakhstan’s central bank is looking to invest in crypto assets as it diversifies its reserves from just gold. The bank has already raised up to $350 million from its gold and foreign exchange reserves, which it plans to invest in crypto assets.

Kazakhstan’s Central Bank To Invest In Crypto Assets By May

According to a Reuters report, the central bank’s governor, Timur Suleimanov, revealed that they have formed a portfolio of up to $350 million from gold and foreign exchange reserves, which they plan to use to invest in crypto assets. “We are currently developing ​a list of instruments in which we ⁠will invest. This includes not only ​cryptocurrency itself,” he said.

The governor of the Kazakhstan central bank suggested they would also invest in crypto stocks. He noted that the investment portfolio will include shares of high-tech companies related to crypto assets, index funds, and other instruments that exhibit similar dynamics to crypto assets.

The central bank’s Deputy Chair Aliya Moldabekova stated that the investments will begin in April or May. “We are not talking about any large investment in cryptocurrencies. We are currently selecting companies that deal with digital ​assets. For ​example, those ⁠involved in cryptocurrency infrastructure. We are currently in the process ​of selecting such companies,” she ​said.

This move comes as governments warm up to crypto, with the U.S. already planning to set up a strategic Bitcoin reserve. It also marks a growing trend as central banks begin to adopt Bitcoin as a reserve asset. As CoinGape reported, the Czech National Bank acquired $1 million worth of BTC and other crypto assets last year as part of a regulated experiment.

Deutsche Bank also predicted last year that central banks could adopt Bitcoin alongside gold as a reserve asset by 2030. They stated that pro-crypto regulations will contribute to this happening.

Domination in Bitcoin Mining

According to World Population Review, Kazakhstan ranks third in Bitcoin mining, just behind the United States and China. The country accounts for 13.22% of the monthly hashrate share, with the U.S. and China accounting for 37.84% and 21.11%, respectively.

Kazakhstan notably legalized crypto mining and trading nationwide last year, lifting previous restrictions that limited mining to the Astana International Financial Center (AIFC). The country also launched the Alem Crypto Fund, the first state-backed crypto reserve, last year in partnership with the top crypto exchange Binance.

The fund currently holds BNB, which is the native token of the BNB chain. This forms part of the Kazakhstan government’s plans to launch a $1 billion national crypto reserve.