Kyrgyzstan is moving ahead with its national cryptocurrency strategy, launching a stablecoin and preparing for the public sector rollout of a central bank digital currency (CBDC), according to Binance co-founder and former CEO Changpeng Chao (CZ).
The new stablecoin, believed to be KGST, is pegged 1:1 to Kyrgyzstan’s national currency, the Som, and is registered on the National Digital Asset Registry. This is different from USDKG, a dollar-backed stablecoin backed by $500 million in gold reserves that the Kyrgyz Ministry of Finance plans to launch in the third quarter.
At the same time, CBDC (digital som) in the country is now legally recognized and is expected to be piloted for government-related payments, CZ added.
This follows President Sadyr Japarov’s decision in April to amend the country’s constitution to give DigitalSOM legal tender status once the National Bank fully implements it.
Kyrgyzstan is also building a broader crypto infrastructure. Created a national cryptocurrency reserve, including BNB, initiated law enforcement training, and signed Binance Academy in partnership with 10 universities.
Chao noted that Binance also localized its app in Kyrgyzstan and hosted a 1,000-person meetup in the capital, Bishkek.
He added that Sign, in which CZ’s family fund YZi Labs invests, is also working with the Kyrgyz government on smart contract infrastructure.
