Kazakhstan, in its efforts to establish itself as a pro-crypto country, is looking to create a hefty crypto portfolio. In a fresh report, Reuters said that Kazakhstan is planning to liquidate some portions of its gold and foreign exchange reserves and allocate the funds to its crypto portfolio.
Kazakhstan aims to invest as much as $350 million into its crypto portfolio through this means. As per Reuters, the government there is likely to make its first crypto purchase in April.
Timur Suleimenov, the governor of Kazakhstan’s national bank and Aliya Moldabekova, its deputy governor will be heading the digital assets purchases.
Until April, the funds being collected for crypto allocation are being held in money market instruments.
The report comes roughly two months after Kazakhstan’s National Investment Corporation said crypto confiscated in criminal cases would be put into a national reserve.
The trend of creating national crypto reserves started after U.S. President Donald Trump said he would be creating one for the U.S. last year. El Salvador, the country that legalized BTC as a legal tender in 2021 also has one. Brazil, Japan, and Russia are among other nations that are in discussions to stack up a crypto stockpile and hold it for long-term profits.
The central bank of Kazakhstan, meanwhile, is tightening its oversight over the crypto sector to make it safer for engagement.
In January this year, the central bank said only crypto assets approved by it would be allowed to be traded on exchanges operating in the country. Digital Financial Assets (DFAs) is being positioned entirely as a new asset class in Kazakhstan, a country that has emerged as a hub for crypto mining in recent years.