Kazakhstan is embracing a bold strategy to modernize its energy system by leveraging cryptocurrency mining and expanding digital trading beyond the Astana International Financial Centre (AIFC). This initiative, driven by the country’s First Vice Minister of Digital Development, Innovation, and Aerospace Industry, Kanysh Tuleushin, aims to use digital mining to upgrade existing power infrastructure and enhance efficiency. Under the proposed ’70/30′ model, foreign investors would fund upgrades to thermal power stations, with 70% of new energy output directed to the national grid and 30% allocated for crypto mining operations. This innovative approach echoes practices in the United States where miners contribute to balancing the power grid during periods of low demand. Tuleushin believes Kazakhstan can replicate this model, using mining farms as a crucial tool to stabilize and support its energy system. He envisions utilizing associated petroleum gas, often flared or wasted from oil production, for electricity generation at these farms, minimizing environmental impact and creating new revenue streams for the oil sector. The digital mining industry is already proving successful in Kazakhstan, generating $34.6 million in tax revenue over the past three years, with over 415,000 pieces of mining equipment registered since 2023. Kazakhstan is also exploring broader crypto trading regulations beyond the AIFC, where currently trading activity is restricted. The potential impact of removing these restrictions on the country’s digital asset ecosystem is significant, according to experts. If full regulatory freedom were granted, Kazakhstan could become a central hub for cryptocurrency trading in Central Asia, vying with neighboring countries like Uzbekistan and Kyrgyzstan. This liberalization could attract major players, as evidenced by the UAE, creating substantial revenue streams for the nation. The government is currently working on proposals to establish transparent crypto exchanges and ATMs outside the AIFC. This initiative requires coordination with key regulatory bodies like the National Bank and the Financial Market Regulation Agency. To further promote digital financial tools, Kazakhstan is also expanding the use of the digital tenge, a Central Bank Digital Currency (CBDC) designed for full expenditure transparency. The pilot project has issued 250 billion digital tenge so far, utilizing unique digital tags to track transactions.