Kazakhstan will tokenize the central bank's gold while building a $1 billion cryptocurrency reserve

Source: Yellow Original Title: Kazakhstan to Tokenize Central Bank Gold While Building a $1 Billion Crypto Reserve

Original Link: Kazakhstan’s National Bank approved three pilot projects for digital assets, including the tokenization of its gold holdings.

The central bank also plans to test cryptocurrency payments via QR codes and issue a stablecoin pegged to the tenge.

These initiatives come as Kazakhstan accumulated 32 tons of gold in 2025, while building a national cryptocurrency reserve of $1 billion.

Gold prices hit record highs above $4,540 per ounce this week.

What happened

Kazakhstan’s monetary authority approved a gold tokenization pilot without providing technical details. The central bank ranked among the world’s largest gold buyers in 2025, purchasing 8 tons in August alone, representing more than half of all central bank gold purchases worldwide during that month.

NBK Governor Timur Suleimenov previously described gold as an “excellent investment product that performs better than cryptocurrencies and other financial instruments.” However, Vice Governor Berik Sholpankulov stated in November that the regulator may invest parts of its gold and foreign exchange reserves in large-cap cryptocurrencies.

The NBK has allocated $300 million of its reserves to the country’s $1 billion cryptocurrency reserve plan.

The second pilot will test cryptocurrency payments via QR codes despite a recent regulatory statement prohibiting the use of crypto for goods and services. Madina Abylkasymova, head of the Agency for Regulation and Development of the Financial Market, stated that Kazakhstan will allow citizens to invest in crypto assets but will prohibit their use for payments. The QR system likely involves converting digital currencies into fiat currency before purchases.

All Kazakh banks must implement a unified interbank QR code for payments before the end of the first quarter of 2026.

The third pilot focuses on issuing a stablecoin denominated in tenge to facilitate digital asset transactions beyond the currently limited regime of the Astana International Financial Centre.

Why it matters

Kazakhstan’s dual approach of accumulating gold and adopting cryptocurrencies highlights competing reserve diversification strategies. The central bank has priority rights over all locally refined gold and has actively exercised this privilege. Its addition of 32 tons in 2025 occurred while gold prices rose over 70% that year.

Tokenizing gold reserves could improve liquidity and reduce storage costs while maintaining exposure to the precious metal.

The contradiction between the governor’s preference for gold over cryptocurrencies and the vice governor’s push to allocate reserves to crypto reflects broader debates among central banks worldwide about digital assets.

The banking law “On Banks and Banking Activities,” currently under consideration by the Senate, will comprehensively regulate digital finance in Kazakhstan. The bill has already been approved by the Majilis and awaits final approval.

A cryptocurrency exchange announced a pilot for crypto payments via QR codes at a forum in Dubai in October. Kazakhstan previously launched the Evo (KZTE) stablecoin, pegged to the tenge, in September on a high-capacity blockchain through a local exchange with Mastercard support.