The central Asian country of Kyrgyzstan plans to debut Gold Dollar or USDKG, the gold-backed stablecoin tied 1: 1 with the US dollar in the third quarter, Project’s adviser Gabriel Guerra told Coindesk at the Token2049 conference in Dubai.

StableCOin, supported by $ 500 million in gold from Kyrgyzstyz Ministry of Finance, is designed to facilitate seamless cross -border transfers in a country where transfers account for 30% of GDP.

The ministry aims to expand the gold reserves to as much as $ 2 billion, with independent audits planned to ensure confidence and transparency in security support.

Gold has long been considered a very fluid, risk -free value of value. However, its occasional price fluctuations pose a potential risk of the stability of stableecoin.

To mitigate this, stableecoin will be over -collateralized, noted Guerra, adding that its primary use case would be to move across borders.

“StableCOin will be used in cross -border transactions and international trade in a first focus on Central Asia and expansion to Southeast Asia, and the Middle East later planned,” Guerra said.

Note that USDKG is not intended to track gold prices such as USDT or PAXG. Instead, it will be supported exclusively by gold reserves and issued and redeemed on a USD 1 base with USD, maintaining a stable value bound directly to the global reserve -fiat -currency, which was widely used in international trade.

USDKG holders can redeem their stableecoins for physical gold and other crypto assets or withdraw them as Fiat currency.