Kyrgyzstan has announced the launch of the USDKG stablecoin, which will be backed by gold reserves and supported by the country’s government. This move is part of the nation’s overall Web3 strategy, aiming to establish itself as a crypto hub in Central Asia.
This is reported by Finway
Project advisor William Campbell shared this in an interview with Cointelegraph. He noted that USDKG will be pegged to the US dollar, but its backing will consist of real gold reserves, which will be stored in safes and undergo regular audits.
“We do not want people to speculate. We strive for the stability of the dollar, but the trust of gold. This is not digital gold for investors, but a means for everyday transactions,” Campbell explained.
According to Campbell, the uniqueness of USDKG lies in the real audit confirmation of its backing and the support from the government, which has already recognized this initiative as part of its national Web3 strategy. Although the Kyrgyz government is not directly managing the project, it provides institutional support and, if necessary, gold reserves.
Campbell also emphasized that Kyrgyzstan intends to become a new, better version of El Salvador. “This is not about CBDC [central bank digital currency] — it’s about a partnership between the state and the private sector,” he stressed.
USDKG plans to compete with other stablecoins through its transparency, trust, and innovative DeFi products, including yield and lending models. The gold audit is scheduled every six months by a Big Four firm, ensuring additional reliability for the project.
Campbell highlighted that the project is a matter of national pride. “When the people have pride — projects work better,” he added.
Kyrgyzstan has already registered over 140 crypto companies and offers tax incentives and a clear legal framework, making the country attractive to investors. It is worth noting that in April 2025, Kyrgyz President Sadyr Japarov announced collaboration with Binance exchange founder Changpeng Zhao under a memorandum of understanding. Later, in May, Binance entered into a similar agreement with the National Investment Agency under the President of Kyrgyzstan.