Kyrgyzstan has unveiled plans to implement a national cryptocurrency strategy, including the launch of a stablecoin backed by the national currency and the introduction of a Central Bank digital currency (CBDC) for public sector use.
The new stablecoin, KGST, will be fully backed by the Kyrgyz som at a 1:1 ratio and has already been registered in the State Register of Digital Assets. KGST differs from USDKG, a dollar-backed stablecoin backed by the Kyrgyz Ministry of Finance's $500mn gold reserve, which is set to launch in the third quarter of the year.
At the same time, the Central Bank’s digital currency, the digital som, has been granted legal status and is expected to be used on a trial basis for government payments soon. Once fully launched, the digital som will have the status of legal tender, following amendments to the country’s constitutional law introduced by President Sadyr Japarov in April.
The initiative is part of a broader effort to develop Kyrgyzstan’s cryptocurrency infrastructure. A national cryptocurrency reserve, including Binance Coin (BNB), has been established, while training programs for law enforcement officers have been launched. Additionally, Kyrgyz authorities signed an agreement with Binance Academy to collaborate with 10 universities on crypto education.
Changpeng Zhao, founder and former CEO of Binance, shared details of the initiative on his X social media page. Zhao noted that Binance adapted its app to the Kyrgyz language and organized a 1,000-person meetup in Bishkek to promote awareness of the country’s new crypto projects.
