Kyrgyzstan has made a significant move towards adopting digital currency with President Sadyr Zhaparov signing legislation that initiates a pilot project for the central bank digital currency (CBDC). This law gives legal tender status to the digital som, a digital version of the nation’s currency.

This announcement was made by the presidential office on April 17, 2025, granting the National Bank of the Kyrgyz Republic complete authority over the issuance and regulation of the digital som.

The Role of Kyrgyzstan’s Central Bank

The central bank will manage the infrastructure for the digital currency, with full implementation expected to be decided in 2026. Before then, a robust system is planned to protect against fraud and unauthorized transactions.

Despite increasing global interest in CBDCs, critics raise concerns about privacy and the potential for government overreach.

Kyrgyzstan joins over 115 countries exploring CBDCs, with only four nations — Bahamas, Nigeria, Jamaica, and Zimbabwe — having fully launched theirs.

In another development, Changpeng ‘CZ’ Zhao, former CEO of Binance, recently signed an agreement with Kyrgyzstan’s foreign investment agency to provide guidance on blockchain and cryptocurrency regulations. President Zhaparov noted that these initiatives aim to boost economic growth and innovation.

Kyrgyzstan Flag Raising

Over 30% of the country’s energy supply comes from renewable sources, which could attract more crypto mining operations and blockchain projects.

Key Highlights:

• Pilot for the CBDC gives legal status to the digital som.
• Full operational decisions won’t finalize until 2026.
• Kyrgyzstan is positioned for innovation due to its renewable energy resources.