The government of Kazakhstan is turning to digital currency to raise $740 million in investment over 3 years, according to local media reports.
Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry, Askar Zhumagaliyev set out the plan in a speech to the upper house of the Kazakh legislature.
Kazakhstan is home to a growing digital currency sector, with 14 block reward mining facilities already operational in the country, responsible for over $200 million of investment to date.
Zhumagaliyev told lawmakers that there could be a further 300 billion tenges, or $738 million worth of investment to come over the next three years from the sector.
“According to the report that we have prepared with international experts, we expect another 300 billion tenges (US$738.4 million) in the next three years.”
The matter was before parliament as part of a debate on new laws that are set to prohibit issuing and circulating digital currencies in the country. However, the new laws do not restrict block reward mining, with the minister suggesting this could be a significant source of investment for the country over the next few years.
Citing progress in the United States, South Korea and Sweden in digital currency and transaction processing, Zhumagaliyev said he anticipated major growth in the sector in Kazakhstan—in part a consequence of the low energy costs available in the country for transaction processors.
Back in December, it was revealed that the government in Kazakhstan was not taxing transaction processing profits, which it considers a technological process rather than an entrepreneurial activity. This makes the country even more appealing for some international operations looking to avoid or minimize tax.
Nevertheless with the sector expected to contribute significant investment to the country in the months and years to come, the government is keen to continue to encourage growth in the sector.
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