Kazakhstan has linked incentives for private Bitcoin mining companies to the growth of its National Strategic Crypto Reserve under a framework that requires participating miners to contribute digital assets.

The policy gives approved mining companies access to long-term electricity quotas, while applications will be reviewed through licensing procedures and reserve management arrangements will be overseen by state institutions. In a separate but related move, Kazakhstan will expand the use of the digital tenge across government procurement, enabling public purchases and major budget projects through its central bank digital currency programme.

Together, the measures combine sovereign cryptocurrency accumulation with broader use of Kazakhstan's CBDC in public finance. The approach marks a shift from the country's earlier regulatory posture, which tightened oversight of the mining sector after an influx of miners relocated from China in 2021 strained the national grid and prompted the introduction of a tiered tax on crypto mining operations.

Strategic Mining Programme

The government has approved a strategic digital mining framework that grants eligible companies electricity quotas at ceiling tariffs for up to 10 years. In return, participating miners must transfer part of the cryptocurrency they mine to the Astana Hub autonomous cluster fund.

Those digital assets will then be transferred to the National Investment Corporation under the National Bank for trust management. The arrangement is designed to replenish Kazakhstan's National Strategic Crypto Reserve without requiring the government to operate mining facilities directly.

Applications will be processed through Kazakhstan's E-licensing database. A dedicated commission will assess each submission before a final decision is made.

Approved miners must sign an agreement with the Astana Hub fund within five working days. They are also required to conclude a separate electricity purchase contract with the relevant energy-producing organization before receiving subsidized electricity allocations.

The framework allows Kazakhstan to draw on private-sector mining activity while building state-backed cryptocurrency reserves. It also gives the government exposure to Bitcoin production without directly managing mining infrastructure. The model echoes state-linked Bitcoin accumulation efforts seen elsewhere, including El Salvador's sovereign Bitcoin holdings and Bhutan's government mining operations through its sovereign wealth arm, though Kazakhstan's approach relies on private miners contributing mined assets rather than the state operating its own facilities.

Digital Tenge to Be Used for Public Spending From August

Kazakhstan has also widened the role of its central bank digital currency in public finance. Deputy Prime Minister and Minister of National Economy Serik Zhumangarin chaired a government meeting that reviewed progress on the digital tenge programme.

Officials determined that the platform is ready for public procurement after integration with the Ministry of Finance's information systems. Government agencies are expected to begin using the digital tenge from August for purchases of medicines, fuel, lubricants, and other material supplies.

Kazakhstan has already issued 340 billion digital tenge, equivalent to about $626 million, through its CBDC programme. Authorities have completed 20 pilot projects, with another 10 still underway. The government is also preparing 50 additional pilot projects to expand the platform's use. The digital tenge rollout places Kazakhstan among a group of countries advancing CBDCs from pilot phases into routine government spending, a transition few jurisdictions have yet reached.

In addition to the procurement rollout, officials have mandated digital tenge payments across eight categories of budget expenditure for projects worth more than 100 million tenge, or roughly $184,000. These categories include infrastructure construction, budget lending, subsidies, grant financing, procurement by the National Bank, and purchases involving quasi-state entities.

Kazakhstan's latest policies place Bitcoin mining incentives and the digital tenge within a coordinated national digital asset strategy. The initiatives are intended to expand sovereign cryptocurrency reserves while increasing the use of blockchain-based payments across government spending.