Kyrgyzstan is moving forward with its national cryptocurrency strategy, launching a stablecoin and preparing a public sector central bank digital currency (CBDC) rollout, according to Binance co-founder and former CEO Changpeng Zhao (CZ).
The new stablecoin, believed to be KGST, is pegged 1:1 to the national currency, the Kyrgyz Som, and is registered in the state’s registry of digital assets. It is distinct from USDKG, a dollar-backed stablecoin backed by $500 million in gold reserves from the Kyrgyz Ministry of Finance, scheduled to launch in Q3.
At the same time, the country’s CBDC, the digital like, is now legally recognized and expected to be piloted for government-related payments, CZ added.
This follows a decision by President Sadyr Japarov in April to amend the country’s constitutional law, giving digital legal tender status if fully launched by the National Bank.
Kyrgyzstan is also building a broader crypto infrastructure. It has created a national cryptocurrency reserve that includes BNB, launched law enforcement training and signed Binance Academy to partner with 10 universities.
Binance has also localized its app in Kyrgyz and held a meeting with 1,000 people in the capital Bishkek, Zhao pointed out.
Sign, in which CZ’s family fund YZi Labs is an investor, is also working with the Kyrgyz government on smart contract infrastructure, he added.
