Kyrgyzstan has officially launched a stablecoin, KGST, which is pegged 1:1 to the Kyrgyzstani som, while also announcing its ambition to implement a central bank digital currency (CBDC) and look into establishing a digital asset reserve.
The KGST stablecoin is built on the BNB Chain, with BNB being considered for inclusion in the potential crypto reserve as stated by former Binance CEO Changpeng ‘CZ’ Zhao during a meeting with President Sadyr Japarov and the National Council for the Development of Virtual Assets and Blockchain Technologies.
CBDC Plans in Motion
As of now, the pilot for the CBDC will unfold in three phases, initially connecting commercial banks for transactions, followed by integration with the Central Treasury for government payments, and finally testing offline transactions.
“After successfully piloting all three phases, the platform will be rolled out nationally and scaled,” noted Kyrgyzstan’s top bank.
In addition to the stablecoin, Japarov has urged the Ministry of Economy and Commerce to ensure the KGST stablecoin is adopted on international exchanges and to put together proposals for the national crypto reserve.
Educational Initiatives
Moreover, Japarov has tasked the Ministry of Science, Higher Education, and Innovation with developing plans for enhancing digital financial literacy and training specialists within the blockchain and AI fields. CZ mentioned plans for Binance Academy to partner with top universities in the region and localize the Binance app to cater to Kyrgyzstan’s needs.
Updates from Kyrgyzstan 🇰🇬
- The National Stablecoin has launched on @BNBChain
- A CBDC will soon follow for government-related payments.
- A National Cryptocurrency Reserve will be established with #BNB included.
- Training and education initiatives through Binance Academy are underway.
While numerous countries have embarked on CBDC initiatives, only three have fully operational CBDCs to date: the Bahamas Sand Dollar, Nigeria’s e-Naira, and Jamaica’s JAM-DEX.
