A new stablecoin has been launched in Kyrgyzstan, pegged 1:1 to the Kyrgyzstani som, alongside announcements for a central bank digital currency (CBDC) and efforts to develop a digital asset reserve. The KGST stablecoin will operate on the BNB Chain, and BNB may be included in the crypto reserve if it is established, according to Changpeng ‘CZ’ Zhao, who attended the National Council for the Development of Virtual Assets and Blockchain’s recent meeting with President Sadyr Japarov.
The committee tasked with Kyrgyzstan’s cryptocurrency initiatives must ensure the KGST stablecoin is adopted on international trading platforms within two months and put forth proposals for the creation of a national crypto reserve. This move reflects a growing trend in the adoption of digital currencies at the national level as nations explore the potential of stablecoins and CBDCs to enhance payment systems, promote transparency, and stimulate investment.
Additionally, Japarov instructed the Ministry of Economy and Commerce to work on a legal framework for virtual assets while the National Bank of Kyrgyzstan prepares for pilot testing of the digital som.
The forthcoming CBDC trials will unfold in three phases, starting with banks linking to the platform for fund transfers, followed by integration with the Central Treasury for government and social payments, and concluding with tests for transactions in low-connectivity situations before a full-scale implementation.
Updates from Kyrgyzstan🇰🇬
For more information, please refer to local news outlets covering these developments.
