The President of Kyrgyzstan announced the development of the KGST stablecoin pegged to the national currency, the launch of digital som (CBDC) testing, and the creation of a state cryptocurrency reserve.
At a meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies in Bishkek, President Sadyr Japarov instructed the council to begin launching a national stablecoin pegged to the som, as well as to start pilot testing of the central bank digital currency.
According to the directive, the Secretariat of the National Council must ensure the launch of the KGST stablecoin and work on its potential listing on international trading platforms. Changpeng Zhao, Founder of Binance and now chief strategic advisor to the Kyrgyz government on digital transformation, announced that the national stablecoin will operate on the BNB Chain blockchain.
In addition, Japarov instructed:
- The National Council for the Development of Virtual Assets to submit proposals for creating a state crypto reserve;
- The Ministry of Economy and Commerce to continue improving legislation on virtual assets;
- The Ministry of Science, Higher Education, and Innovation to develop initiatives for improving citizens’ digital and financial literacy and fostering competencies in artificial intelligence and blockchain;
- The State Committee for National Security, the Ministry of Internal Affairs, and other relevant agencies to develop unified security and risk management standards for digital assets;
- The National Bank to begin testing the digital som platform.
Zhao also revealed that the BNB token will become part of Kyrgyzstan’s state cryptocurrency reserve once it’s established. He outlined Binance’s plans in the country, which include:
- translating the Binance app into the Kyrgyz language;
- partnering with ten leading universities in Kyrgyzstan;
- training specialists in blockchain technology and the digital economy through Binance Academy;
- developing digital solutions for government and corporate services in collaboration with the EthSign platform.
The initiative to launch a stablecoin and the digital som is part of Kyrgyzstan’s strategy to develop an innovative economy and strengthen its position in the global digital finance market. Japarov also noted that Kyrgyzstan currently ranks 19th in the global cryptocurrency adoption index.
Previously, the President of the Kyrgyz Republic officially recognized the CBDC as a legal means of payment and signed the “On Virtual Assets” law, which serves as the foundation for regulating the country’s cryptocurrency sector.
