Kazakhstan’s Quiet Revolution: Crypto, AI, and a Tech Transformation
Nations are currently competing to harness the power of artificial intelligence and digitalisation. While China and the United States lead the race, the European Union is focused on ethical regulation and digital rights. For emerging economies, entering this race represents an attempt to shift global power dynamics in their favor, aiming to narrow the development gap.
For the Central Asian nation of Kazakhstan, this shift is essential for moving away from a raw materials-based economy, which is not sustainable long-term. The country has made digitalisation and AI development central to its national strategy, as announced by President Kassym-Jomart Tokayev in September 2025.
A Ministry, a Law, and a Code
To implement this strategy, the president announced the creation of the Ministry of Artificial Intelligence and Digital Development. This new ministry will oversee the integration of AI across key sectors and restructure governance based on AI principles. Additionally, Kazakhstan is drafting a Digital Code to organize digital governance and ensure data protection.
Another significant step is a proposed law on artificial intelligence, which aims to regulate ‘high-risk’ systems and mandate the labeling of AI-generated content. This legislation will empower regulators to suspend harmful AI applications. Tokayev emphasized the importance of ethical norms, aligning Kazakhstan’s approach with that of the European Union on responsible AI.
AI Governance and Crypto Assets
Kazakhstan’s ambitions extend beyond simple regulation; the country aims to transform its financial sector and public services as well. With over 92% of public services available online and a majority of payments being cashless, Kazakhstan is now transitioning from e-Gov to AI-Gov, embedding machine learning into governance itself.
Moreover, Kazakhstan is experimenting with digital finance. The government is expanding the use of its national digital currency, the digital tenge, which is already financing projects from the National Fund. President Tokayev stated, “Now is the time to scale up the use of the digital tenge within national and local budgets, as well as in the budgets of state holdings.”
Additionally, the establishment of the State Digital Assets Fund will serve as a reserve for crypto and digital assets.
Hub of Eurasia
Kazakhstan seeks to position itself as the digital hub of Eurasia by introducing a focus on AI in education. President Tokayev announced the creation of an AI research university to prepare future specialists capable of supporting the digital transformation. The Alem.ai International Centre for Artificial Intelligence, launched on October 2, will lead this initiative by designing AI tools for policymaking, data analysis, and forecasting.
This summer, Kazakhstan launched Central Asia’s most powerful supercomputer, with plans for a second machine. This supercomputer will enhance the country’s e-government services and support AI model training.
Digital Identity in a Multipolar World
Kazakhstan’s digital transformation carries significant geopolitical weight. Situated between China, Russia, and Europe, the country balances partnerships while asserting digital sovereignty. It welcomes Western data firms, collaborates with Chinese researchers, and nurtures its own AI ecosystem.
This multi-vector approach reflects Kazakhstan’s broader foreign policy and places it among a select group of nations embedding AI into their institutional framework. The challenge now lies in translating bold reforms into tangible progress that enhances competitiveness without losing control over rapid technological advancements.
