Kyrgyzstan has officially launched a new stablecoin, KGST, pegged 1:1 to the Kyrgyzstani som. This initiative is part of a broader strategy to modernize the nation's financial infrastructure, which also includes plans to issue a central bank digital currency (CBDC) and explore the creation of a digital asset reserve.
The KGST stablecoin will operate on the BNB Chain. According to former Binance CEO Changpeng ‘CZ’ Zhao, who attended the National Council for the Development of Virtual Assets and Blockchain Technologies’ second meeting with President Sadyr Japarov, BNB (BNB) would be considered for inclusion in the crypto reserve if it is launched.
The first meeting of the council took place in April, at which time CZ was appointed as a strategic adviser for Kyrgyzstan’s crypto committee.
Local media outlet KG24 reported that Kyrgyzstan’s crypto committee is tasked with ensuring the KGST stablecoin is listed on international platforms. Furthermore, the committee must submit proposals for the establishment of a national crypto reserve within the next two months.
These developments underscore Kyrgyzstan's commitment to advancing crypto adoption at the nation-state level. By experimenting with stablecoins and CBDCs, the country aims to modernize its payment systems, enhance financial inclusion, boost transparency, and attract investment.
President Japarov also directed the Ministry of Economy and Commerce to continue developing a legislative framework for virtual assets. Simultaneously, the National Bank of the Kyrgyz Republic has been instructed to commence pilot testing of the digital som.
Kyrgyzstan Moves Forward with CBDC Plans
The pilot program for the digital som will be conducted in three stages. This initiative builds upon the National Bank's previous demonstration of the digital som platform, which was developed in collaboration with Build Block TECH. The first stage will focus on connecting commercial banks to facilitate transfers. The second stage will involve linking the Central Treasury to enable social and government payments. The final stage will test offline and low-connectivity transactions, preparing for a nationwide rollout.
According to Kyrgyzstan’s central bank, "After successfully piloting all three phases, the platform will be rolled out nationally and scaled."
Initially, in April, the National Bank had indicated that a decision on whether to issue a CBDC would not be made until the end of 2026.
While over 100 nations have initiated CBDC projects, only three CBDCs are currently operational globally: the Bahamas Sand Dollar, Nigeria’s e-Naira, and Jamaica’s JAM-DEX, according to data from cbdctracker.org.
Education is Also a Focal Point for Kyrgyzstan
In parallel, President Japarov advised the Ministry of Science, Higher Education, and Innovation to submit proposals for developing digital financial literacy plans. The ministry is also tasked with outlining strategies for training specialists in the blockchain and AI industries.
CZ announced that Kyrgyzstan plans to integrate Binance’s educational initiative, Binance Academy, with ten of its top universities. He also stated that the Binance app will be fully localized across the country.
Updates from Kyrgyzstan🇰🇬
— CZ 🔶 BNB (@cz_binance) October 25, 2025
- The National Stablecoin launched, on @BNBCHAIN
- The CBDC is ready for rollout. Yes, both. CBDC will be used for gov related payments, etc
- The National Cryptocurrency Reserve set up, #BNB included
- LE training
- Binance Academy with 10 top… https://t.co/KPrL0pnsWGpic.twitter.com/SInh5aCPMZ
This announcement follows the recent pardon of CZ by US President Donald Trump on Wednesday, in relation to anti-money laundering violations during his tenure as Binance CEO.