This country supports state-owned cryptocurrency mining: this is how it plans to create its own National Reserve

This country has decided to support state-run cryptocurrency mining as a basis for creating its own National Crypto Asset Reserve, seeking to strengthen its digital economy and attract new investment.

The Kyrgyz parliament has passed a new law called “On Virtual Assets,” which authorizes the government to manage cryptocurrency mining activities and create an official cryptocurrency fund. 

Promoted by the Minister of Economy and Trade, Bakyt Sydykov, this new regulation marks a milestone by establishing a national strategy backed by the state to consolidate its presence in the crypto world.

With this regulation, Kyrgyzstan not only formalizes its entry into the cryptocurrency and digital asset ecosystem, but also redefines the role of the state in the digital economy, integrating a comprehensive legal framework for this asset class. The law includes the issuance of tokens linked to real assets and proposes the creation of an independent body tasked with overseeing and ensuring transparency in the handling of these digital assets, thus fostering trust and open access.

Kyrgyzstan launches comprehensive cryptocurrency framework

Según un release According to a government official, a bill was passed on September 10th establishing a clear legal framework for virtual assets, incorporating concepts such as “state cryptocurrency reserve” and “state mining.” This initiative aims to formalize a comprehensive national policy that regulates everything from the issuance and circulation of digital currencies to the tokenization of physical assets.

The law in question distributes responsibilities among three strategic ministries: the Ministry of Economy and Trade, the Ministry of Finance, and the Ministry of Trade and Industry. It places oversight in the hands of an independent body appointed by the president, ensuring that the rules not only exist on paper but are also effectively enforced. It also emphasizes the regulation of virtual asset operators with specific licenses and the implementation of mechanisms to ensure transparent and legitimate transactions.

One of the most innovative aspects is the official recognition of tokens linked to real assets, which opens the door to digitally representing property, commodities, or other assets within a secure framework. Thus, Kyrgyzstan not only regulates but also creates an attractive and trustworthy environment for domestic and foreign investors, driving the economy toward a digitalization that promises to be sustainable and orderly.

Crypto mining as a driver of financial sovereignty for Kyrgyzstan

Under its new regulatory framework, Kyrgyzstan has integrated cryptocurrency mining directly into its national economic strategy, taking a bold step by turning this activity into a tool for the state to accumulate digital assets. More than just a technical process, state mining is now recognized as a strategic pillar within the country's financial policy, marking a significant institutional shift.

The bill establishes that mining operations will be regulated with transparent tariffs, including for government entities. 

Minister Sydykov clarified that critical infrastructure such as thermal power plants will not be used for these activities, seeking to protect national energy resources. Instead, The efficient use of renewable energy will be prioritized and specially designated industrial zones will be used. to promote sustainable productive development.

With state mining, the Kyrgyz government aims to strengthen its digital reserves accumulating cryptocurrencies directly, thus reducing its dependence on traditional assets such as the dollar or gold. Furthermore, this strategy will be complemented by the issuance of stablecoins backed by fiat currency, creating a hybrid ecosystem that balances stability and decentralization. Together, these measures position Kyrgyzstan as one of the few countries confident in integrating crypto mining into its economic policy, with a clear vision of long-term financial sovereignty.

The country establishes a state cryptocurrency reserve 

The creation of a state cryptocurrency reserve is the central focus of the bill recently approved by the Kyrgyz Parliament. This reserve will include a variety of digital assets obtained through purchase, mining, issuance, and tokenization. The President of the Republic will be responsible for establishing the rules for its formation, storage, and use, providing strong and clear institutional support.

For Minister Sydykov, this reserve is a tool to diversify the state's financial instruments and strengthen the country's economic stability. In a context where many emerging economies are seeking innovative ways to develop both within and outside the traditional monetary system, Kyrgyzstan is adopting a strategy that combines advanced technology with state oversight. Thus, the crypto reserve becomes a key asset to support public policies, back the local currency, and facilitate international transactions.

In the global context, each country is taking its own stance on cryptoassets. While the United States has begun to establish its own national cryptocurrency reserve with cryptoassets seized in legal proceedings, China has focused on developing a digital version of the yuan, built on a national blockchain, as part of its plan to strengthen its monetary sovereignty. On this spectrum, Kyrgyzstan takes a middle ground, accumulating cryptoassets through mining and issuance under a regulatory framework that guarantees transparency and public benefits.

Beyond the economic impact, this state reserve positions Kyrgyzstan as an innovative player and regional leader in the institutional adoption of digital assets, paving the way for other countries in the region interested in integrating cryptocurrencies into their economic system.