Kyrgyzstan has introduced a stablecoin known as KGST, which is pegged to the Kyrgyzstani som at a 1:1 ratio. This initiative accompanies plans for a central bank digital currency (CBDC) and the establishment of a crypto asset reserve, discussed during meetings with strategic advisor Changpeng Zhao.
The KGST stablecoin will operate on the BNB Chain. If initiated, BNB would form a part of the prospective crypto reserve. Changpeng ‘CZ’ Zhao attended the National Council for the Development of Virtual Assets and Blockchain Technologies’ second meeting on Friday, held with President Sadyr Japarov.
In their discussions, Japarov directed the Ministry of Economy and Commerce to ensure the KGST stablecoin is available on global platforms and to draft proposals for a national crypto reserve within two months.
Kyrgyzstan’s actions signify its focus on crypto adoption at a national level, implementing stablecoins and CBDCs to enhance payment systems, increase financial inclusion, and attract investments. The President has also ordered efforts to formulate legislative structures for virtual assets and to begin pilot testing of the digital som.
Progressing with CBDC Initiatives
The pilot program for the digital som is segmented into three phases, starting with connecting commercial banks for transfers, followed by governmental and social payments, and lastly examining offline transactions before a broader rollout.
Japarov stated, “After successfully piloting all three phases, the platform will be rolled out nationally and scaled.”
Education Initiatives in Kyrgyzstan
Moreover, the President has tasked the Ministry of Science, Higher Education, and Innovation with creating digital financial literacy plans and training blockchain and AI specialists. CZ announced plans to integrate Binance Academy with top universities in Kyrgyzstan and fully localize the Binance app.
Updates from Kyrgyzstan馃嚢馃嚞
- The National Stablecoin launched, on @BNBChain
- The CBDC is ready for rollout. Yes, both. CBDC will be used for government-related payments, etc.
- The National Cryptocurrency Reserve set up, #BNB included
- LE training
- Binance Academy with 10 top universities
- Source: CZ Twitter
This development comes in the wake of CZ’s pardon by US President Donald Trump for previous violations while serving as CEO of Binance.
