The National Bank of Kazakhstan has launched a new pilot project, which would mark the world's first government launch of a card for payments using Bitcoin (BTC) or other cryptocurrencies.
The initiative allows citizens to make purchases using a card linked to their wallets on cryptocurrency platforms, provided that these services are authorized by the Astana International Financial Center (AIFC), a special economic zone in the country.
Upon making a payment, the user's digital assets are instantly sold on the AIFC's cryptoasset market, and their equivalent value in local currency is immediately credited to the linked bank card, from which the transaction is completed. This mechanism ensures integration between banks and digital service providers.
The bank made the announcement on Tuesday in Almaty, Kazakhstan's main city and financial center, during a meeting with representatives from the banking sector, cryptocurrency exchanges, and fintech companies. The meeting, convened in compliance with a presidential directive to foster the development of the digital asset industry, also served to assess the progress of other tokenization-related projects.
In addition to cryptocurrency cards, the National Bank and market players plan to launch several pilot projects related to digital assets this year. These include the issuance of stablecoins backed by the tenge, Kazakhstan's official currency, the tokenization of financial assets and real estate, and the development of tokens comparable to traditional securities.
According to the statement issued by Banco Nacional, plans are also underway to establish systems for the registration and custody of digital asset backups, as well as services for their exchange and storage. These initiatives seek to lay the groundwork for a new generation of financial services in the country.
In parallel, the institution has prepared, in collaboration with other state entities, a legislative reform project aimed at expanding the use of unbacked digital assets and establishing a clear legal framework for those that are. With this strategy, Kazakhstan seeks to position itself as one of the leading countries in the region in the adoption of decentralized technologies.
Kazakhstan's drive to establish itself as a regional powerhouse hasn't been born in recent days. In May 2024, the country signed a memorandum of understanding with El Salvador, the first nation in the world to grant legal status to bitcoin.
On that occasion, they reported that both nations were seeking to strengthen cooperation around ecosystem regulation. The agreement, signed between the Astana Financial Services Authority (AFSA) and the Salvadoran National Commission for Digital Assets (CNAD), was intended to facilitate the exchange of information, supervise cross-border operations with digital assets, and promote efficient regulatory practices.
