Kyrgyzstan has officially launched its own stablecoin KGST, backed by the national som at a 1:1 ratio, on the BNB Chain blockchain. Additionally, the country’s authorities have confirmed preparations for the launch of a central bank digital currency (CBDC) and announced the creation of a national crypto reserve.
This is reported by Finway
KGST: A New Stablecoin Based on BNB Chain
The new stablecoin KGST operates on the BNB Chain and is backed by Kyrgyzstan’s national currency—the som. The project is being implemented with the direct involvement of Changpeng Zhao, the former head of Binance, who is now a strategic advisor to the country’s crypto committee. The relevant decisions were made during a meeting of the National Council for the Development of Virtual Assets, attended by President Sadyr Japarov.
“The authorities of Kyrgyzstan have launched a national stablecoin on the BNB Chain, prepared a CBDC for government payments, and created a national crypto reserve that includes #BNB. Furthermore, training sessions for law enforcement and the launch of Binance Academy in ten leading universities in the country have begun,” noted Changpeng Zhao.
Plans for CBDC and Digital Economy
Local media specify that within two months, the crypto committee is to develop proposals for creating a reserve of digital assets and ensure the listing of the KGST token on international exchanges. This step is expected to promote the development of the digital economy and attract investments to the country.
President Japarov has instructed the government to continue working on legislation in the field of virtual assets, while the National Bank is to start pilot testing of the digital som. The project will be rolled out in three phases: first, commercial banks will be connected, then the digital asset will be integrated with the Central Treasury, and in the final phase, offline transaction testing will be conducted before the full implementation of the CBDC.
After the successful implementation of the pilot program, the digital som platform will be scaled nationwide. At the same time, the bank emphasizes that the final decision on the mass launch of the CBDC is not expected before 2026.
Kyrgyzstan is paying special attention to digital education. According to Changpeng Zhao, the president has instructed ministries to develop programs to enhance financial literacy and train specialists in blockchain and artificial intelligence. Binance Academy will open its educational courses in ten leading universities in the country.
In Changpeng Zhao’s opinion, the implementation of educational initiatives and the launch of stablecoins are crucial conditions for establishing one of the most developed digital financial infrastructures in the region in Kyrgyzstan.