Kyrgyzstan has officially launched a stablecoin that is pegged 1:1 to the Kyrgyzstani som. This new digital asset comes with confirmation of plans to integrate a central bank digital currency (CBDC) and explore a blockchain-based national asset reserve after a meeting with strategic advisor Changpeng Zhao.
The KGST stablecoin will be powered by the BNB Chain, with BNB potentially being part of the future digital asset reserve, according to Zhao, who attended a meeting of the National Council for the Development of Virtual Assets alongside President Sadyr Japarov.
Previously, in April, Zhao became a strategic advisor for Kyrgyzstan’s cryptocurrency committee. Local media, KG24, reported that the committee needs to ensure the KGST stablecoin is available on international exchanges within a two-month timeframe.
Kyrgyzstan’s latest developments indicate a proactive approach toward cryptocurrency, experimenting with stablecoins and CBDCs as a means to modernize payment systems, foster financial inclusion, and attract further investments. Japarov also instructed the Ministry of Economy and Commerce to evolve a legislative framework for virtual assets and urged preparations for the pilot testing of the digital som.
Kyrgyzstan Advances with CBDC Initiatives
The pilot program for the CBDC is set to occur in phases. It aims to connect commercial banks for transfer operations, integrate with the Central Treasury for disbursement of social and government payments, and lastly, assess offline transactions in areas with low connectivity.
After completing these phases successfully, a national rollout of the platform is planned. Initially, the National Bank announced in April that a decision regarding the CBDC issuance would be postponed until late 2026.
Education Initiatives in Kyrgyzstan
In parallel, Japarov has asked the Ministry of Science, Higher Education, and Innovation to propose ways to enhance digital financial literacy and train blockchain and AI industry specialists. Zhao stated that Kyrgyzstan would work with Binance Academy to integrate it with ten leading universities and localize the Binance app throughout the country.
Updates from Kyrgyzstan 馃嚢馃嚞
- The National Stablecoin has launched on @BNBChain
- The CBDC is on schedule for rollout, intended for government payments, among other uses.
- A national cryptocurrency reserve is being established, incorporating #BNB.
- Educational initiatives will be prioritized, including collaboration with Binance Academy.
- View more information here.
For context, CZ was recently pardoned by US President Donald Trump in regards to earlier anti-money laundering concerns while leading Binance.
