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Since Kazakh President Kassym-Jomart Tokayev announced plans to establish Cryptocity in Kazakhstan the details were left deliberately vague. Will it be just another special economic zone (SEZ), or similar to the Astana International Financial Center (AIFC) or something radically different – a place where blockchain, cryptocurrency and digital governance coverage?
Olzhas Adilbekov.
If it is designed wisely, cryptocity could be more than a niche experiment: it could become the foundation of the nationwide digital transformation, linking technology, policy and economic innovation under one bold vision.
To understand the future concept of the Cryptocity in Kazakhstan, it’s worth looking for international experience of countries that have already implemented similar initiatives. In 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender. President Nayib Bukele also announced plans for a Bitcoin City, to be built near a volcano for energy and financed with Bitcoin bonds. The move generated huge international attention, but results have been disappointing. Surveys show most citizens stopped using the state wallet after spending the free bonus, businesses rarely accept Bitcoin, and the city itself remains unbuilt. The sharp fall in Bitcoin’s value in 2022 hurt confidence of investors, and pressure from the International Monetary Fund (IMF) forced the government to soften parts of its policy. For now, the project is seen more as a bold experiment with limited success.
Dubai has taken another route, they have taken a more controlled approach. In 2025, the Ministry of Finance entered into an agreement with Crypto.com, allowing the payment of government fees in cryptocurrency, with all transactions instantly and automatically converted into dirhams. This initiative forms part of the city’s Cashless Strategy, which aims to make 90% of all digital transactions by 2026. Alongside this, Dubai created the Virtual Assets Regulatory Authority (VARA) and offered licenses to blockchain firms in special economic zones. These moves have already attracted major crypto companies and positioned Dubai as one of the world’s most stable digital finance hubs.
Cryptocity in Kazakhstan is not only a striking brand but also should be a meaningful concept. At its core, such a project would mean digital currency used for transactions, tax-free benefits for investors, and a space where start-ups can test new ideas without heavy restrictions.
For Kazakhstan, two possible scenarios are emerging. The first is a more cautious one – a simple extension of the AIFC, which will provide a platform for companies to register and trade crypto assets under a special legal framework. This option would be safe but also limited that likely lead to developments similar to the AIFC’s own model.
The second path is far more ambitious – creating a full-fledged digital hub with modern infrastructure, bitcoin ATMs, incubators for blockchain start-ups, and companies developing new solutions in finance, logistics and even government services. This version of Cryptocity would not just host trading, it could become the engine of Kazakhstan’s digital economy.
The truth is that not everyone is convinced. Critics warn that a cryptocity could easily become a playground for speculators, as other countries have learned the hard way. El Salvador’s Bitcoin City was launched with great fanfare in 2021, but volatile markets, financing doubts, and repeated delays have left most of the project on paper.
In the Central African Republic, Bitcoin was declared legal currency in 2022, but its status was revoked due to objections from international creditors and a lack of local adoption.
These examples show how enthusiasm can outpace reality. At home, concerns are also valid, cryptocurrencies remain unstable, and large-scale mining consumes huge amounts of energy – already a sensitive issue for Kazakhstan. Yet not all international experiments ended poorly. Dubai has successfully integrated cryptocurrency into government services and built a regulatory system that attracts leading global blockchain companies. For Kazakhstan, the crucial challenge is how to design its Cryptocity in a way that prevents past failures while leveraging proven successes – and this is precisely where clear recommendations are needed.
For such initiatives to be successful, it is important for Kazakhstan to invest in infrastructure and stimulate an innovative environment. This includes reliable digital payment systems, alternative energy sources to support operations, and the physical facilities that make digital currency practical for everyday life. Just as important is encouraging start-ups and blockchain companies to grow and test their ideas inside the city. If Cryptocity becomes a hub for real innovation rather than only a trading platform, it could attract global attention and serve as a milestone in Kazakhstan’s path toward digital transformation.
The author is Olzhas Adilbekov, a graduate student of the Nazarbayev University Graduate School of Public Policy.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times.
