Kazakhstan unveils CryptoCity to promote everyday use of cryptocurrencies

Kazakhstan plans to launch a pilot zone called “CryptoCity” to test the use of cryptocurrencies for payments in a regulated environment. On May 29, President Kassym-Jomart Tokayev unveiled the initiative during his speech at the Astana International Forum 2025, positioning it as part of the country’s broader push to modernise its economy and embrace emerging technologies. What is Kazakhstan’s Crypto City? Describing the project as a “pioneering pilot zone,” Tokayev said CryptoCity would allow people to use cryptocurrencies like Bitcoin to buy goods, services, and potentially engage in broader economic activities. It will operate as a legal sandbox, encouraging innovation while ensuring compliance with national laws. “The concept is that cryptocurrency would be used as a means of payment — to pay in restaurants, cafes, buy real estate, make investments,” said Zhaslan Madiyev, Kazakhstan’s Minister of Digital Development, in a separate statement to local media. He identified Alatau, a tech-centric city that already houses scientific institutions and an innovation park, as the most likely candidate for the pilot zone. CryptoCity implies free circulation of cryptocurrency, crypto-friendly legislation, and crypto as a legitimate means of payment,” he said, stressing that the initiative would be reflected in forthcoming legislation. The goal, Tokayev said, is not only to test the use of digital assets in daily life but also to attract developers, IT professionals, and blockchain innovators to Kazakhstan. Officials hope the project will serve as a catalyst for investment and talent in the country’s tech sector, while also supporting the use of digital currencies in line with global trends. Kazakhstan bets on crypto CryptoCity is the latest in a series of steps Kazakhstan has taken to gradually legitimise and expand the digital asset sector. In January, President Tokayev called for urgent infrastructure improvements to support the broader legal circulation of cryptocurrencies, noting that only around 5% of investors were using regulated platforms under the Astana International Financial Centre (AIFC). In April, Prime Minister Oljas Bektenov announced that Kazakhstan was exploring the creation of crypto banks, regulated institutions that would facilitate digital asset exchange, storage, and transaction support. By mid-May, the country began looking at how digital mining could support energy infrastructure. Vice Minister Kanysh Tuleushin proposed a 70/30 energy model, where foreign-backed upgrades to power plants would reserve 30% of output for mining operations. There were also discussions about using associated petroleum gas to power mining farms in an effort to reduce waste and enhance sustainability. Most recently, on May 22, the National Bank of Kazakhstan announced it would begin licensing crypto exchange operators that convert digital assets into fiat. A new legal category would formally define their role, and the central bank would supervise activities related to stablecoins and digital financial assets. Kazakhstan has also developed a central bank digital currency dubbed the digital tenge and has already issued 250 billion digital tenge to date, with plans to expand use cases. The post Kazakhstan unveils CryptoCity to promote everyday use of cryptocurrencies appeared first on Invezz

Source: Invezz