New Stablecoin and Digital Asset Strategy
Kyrgyzstan has launched a new stablecoin, KGST, pegged 1:1 to the Kyrgyzstani som. This initiative is part of a broader plan to develop digital finance infrastructure and test a central bank digital currency (CBDC). The launch follows a meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies, chaired by President Sadyr Japarov. Former Binance CEO Changpeng “CZ” Zhao also attended the meeting.
The KGST stablecoin will operate on the BNB Chain. Zhao stated that BNB would be included in the country’s planned crypto reserve. Local news outlet KG24 reported that the crypto committee has been instructed to ensure KGST is listed on international trading platforms. Furthermore, they are to draft a proposal for a national crypto reserve within two months.
Kyrgyzstan's leadership views this initiative as a key step in modernizing payment systems, expanding financial access, and attracting investment into the nation's burgeoning fintech sector. The National Council for the Development of Virtual Assets and Blockchain Technologies, established earlier this year, is responsible for overseeing blockchain development, regulating the crypto market, and conducting CBDC testing.
Digital Som Pilot Underway
The National Bank of the Kyrgyz Republic is commencing a three-phase pilot program for the digital som. This pilot builds upon a demo platform that was developed in collaboration with the local blockchain firm Build Block TECH. The initial phase will focus on connecting commercial banks to facilitate interbank transfers. The subsequent phase will involve integration with the Central Treasury to manage government and social payments. The final stage is designed to test offline and low-connectivity transaction capabilities in preparation for a nationwide rollout.
“After successfully piloting all three phases, the platform will be rolled out nationally and scaled,” stated the National Bank. Previously, the regulator indicated that a decision regarding the issuance of a CBDC would be made by the end of 2026. Should the digital som be launched, it would join a select group of live central bank currencies. Examples include the Bahamas’ Sand Dollar, Nigeria’s e-Naira, and Jamaica’s JAM-DEX, according to data from cbdctracker.org.
President Japarov has also directed the Ministry of Economy and Commerce to continue developing the legislative framework for virtual assets. This ministry is tasked with coordinating with the central bank on the implementation of the CBDC pilot.
Education and Technology Partnerships
Digital finance education has been identified as a policy priority for the country. President Japarov has instructed the Ministry of Science, Higher Education and Innovation to prepare proposals for national training programs. These programs will focus on blockchain, artificial intelligence, and digital asset management. The objective is to cultivate a domestic talent pool that can support Kyrgyzstan’s new digital infrastructure.
Changpeng “CZ” Zhao announced that Binance Academy will collaborate with 10 Kyrgyz universities. This partnership aims to offer localized courses and integrate Binance's blockchain curriculum into higher education programs. Additionally, the Binance app will undergo full localization for users in Kyrgyzstan.
This collaboration represents an expansion of Binance’s educational initiatives in Central Asia, building upon similar partnerships established in Kazakhstan and Uzbekistan.
Regional Context and Market Reaction
Kyrgyzstan's stablecoin and CBDC initiatives are unfolding amidst a global surge in similar projects. More than 100 countries are currently exploring or developing central bank digital currencies, although only a limited number have advanced to full deployment. Within Asia, countries such as Hong Kong, China, and Singapore are conducting CBDC pilot programs. Kazakhstan and Uzbekistan have also initiated limited stablecoin trials with private enterprises.
The timing of Kyrgyzstan's launch coincided with the return of former Binance CEO CZ to public events, following a pardon from U.S. President Donald Trump related to anti-money laundering violations. His presence in Bishkek highlighted Binance's sustained influence within the region's policy-making circles.
On the same day, Bitcoin experienced a notable increase, surpassing $113,000. This rise was attributed to indications of progress in U.S.-China trade talks, which generally boosted risk assets worldwide. Ether saw a gain of 2.6%, reaching approximately $4,060. Both BNB and Solana recorded gains of roughly 4.5% each. The total cryptocurrency market capitalization advanced by 1.8% to $3.72 trillion, according to data from CoinGecko.