Kazakhstan’s central bank planned to invest $50-300 million in crypto assets with foreign exchange reserves while waiting for market stabilisation following Bitcoin’s 17% drop, which wiped $500 billion from global crypto market capitalisation.
The Central Bank Considers a $50–300m Crypto Investment After Bitcoin’s Major Drop
On November 28, Timur Suleimenov, chairman of the National Bank of Kazakhstan (NBK), stated that the bank might convert funds from the National Fund and its foreign-exchange reserves into cryptocurrency.
Speaking with RBC, Suleimenov stated that the central bank is still reviewing the situation following a dramatic market slump. He added that the NBK will proceed with caution before committing any substantial funds. “We need to let the dust settle a bit,” he remarked, referring to the current turmoil. The chairman underlined that, while the theoretical investment cap is $300 million, the final commitment may be far smaller.
Suleimenov himself told Bloomberg the same week that Kazakhstan is establishing a cryptocurrency reserve capable of holding up to $1 billion in digital assets, including state-seized coins, industry-related company shares, and crypto-based exchange-traded funds.
Kazakhstan’s interest comes at a time when the market is experiencing one of its greatest corrections this year. Since the beginning of November, the global cryptocurrency market has lost almost $500 billion in value. Bitcoin, the largest cryptocurrency by market capitalisation, has plunged 17%, from $110,000 to $81,000, its lowest level in seven months.
The program is part of the central bank’s overall expansion of its foreign exchange portfolio.
The Central Bank Looks To Crypto As It Diversifies Beyond Gold.
The NBK intends to diversify its holdings, which are now primarily reliant on gold and securities, by adding high-tech stocks and financial instruments related to digital assets.
Suleimenov stated that the investment would be made from the bank’s gold and foreign exchange reserves rather than the National Fund.
The talks came roughly three months after President Kassym-Jomart Tokayev directed the establishment of a strategic state reserve for digital assets. According to the Presidential Press Service, the reserve should focus on cryptocurrency markets due to “modern realities.”
Since then, Kazakhstan has entered the digital asset reserve industry via the Alem Crypto Fund. Through a collaboration with Binance, the country purchased BNB.
Alem Crypto Fund was established by the Ministry of Artificial Intelligence and Digital Development and administered by Kazakhstan Venture Group. The fund chose BNB as its first asset through a strategic relationship with Binance Kazakhstan.
