• Turkmenistan is expanding its digital economy.
• The modernization concerns the introduction of AI, 5G, mobile banking and so on.
• One of the most closed countries in the world has also bet on cryptocurrencies.

Turkmenistan is continuing its course toward digitalizing the economy and the financial sector, despite its status as one of the most closed countries in the world. The government has approved a digital economy development program for 2026-2028, is working on a national AI strategy and is expanding digital financial services. This was reported by local media.

Recall that an important step for the crypto industry was the adoption in November 2025 of the law «On Virtual Assets». The document, signed by President Serdar Berdimuhamedov, defined the legal status of cryptocurrencies, the activity of crypto exchanges, miners and service providers in the field of digital assets.

At the same time, it came into force on January 1, 2026 under the supervision of the central bank.

However, cryptocurrencies did not receive the status of legal tender. The new regulatory framework allows the licensed activity of crypto companies, but preserves state control over the sector.

One of the key areas of the digital transformation was the financial sector. Local banks are actively introducing mobile and internet banking, QR payments, and remote issuance of cards and loans.

According to the regulator, as of October 2025 there were more than 102,000 registered mobile banking users in the country.

In parallel, the authorities are developing digital infrastructure. In 2025 a 5G network was launched in the city of Arkadag, and work began on new international communication channels.

Despite the development of digital services, international rankings continue to classify Turkmenistan among the most closed states in the world. In 2026 the organization Reporters Without Borders ranked the country 173rd out of 180 in its press freedom index, while Freedom House rated the level of internet freedom at just 1 point out of 100 possible.

In addition, the Human Rights Watch report for 2026 notes that access to the network remains strictly controlled, and the authorities have intensified the blocking of resources and the fight against the illegal use of the Starlink satellite internet.

Meanwhile, the neighboring countries of Central Asia are also actively developing the crypto industry. In Kazakhstan, President Kassym-Jomart Tokayev signed a package of laws on the regulation of digital assets and the digital tenge, and the country's authorities plan to invest up to $700 million of state funds in crypto assets and related financial instruments.

At the same time, Uzbekistan has created a special zone, Besqala Mining Valley, for «green» mining, where companies are exempt from taxes and fees until 2035.

Source: Incrypted