- The initiative builds on a growing partnership with Binance and reflects a move toward a regulated digital currency framework.
- Changpeng Zhao stated that the token is live on the BNB Chain and will operate alongside the country’s digital som.
Kyrgyzstan has launched a national stablecoin and moved to introduce a central bank digital currency for state transactions, stepping up its effort to formalize the use of digital assets in the country. The move builds on a fast-developing partnership with Binance and signals a shift toward a more regulated digital currency framework.
President Sadyr Japarov confirmed the launch of a national stablecoin developed with Binance. Changpeng Zhao, Binance’s co-founder, announced on X that the token had gone live on the BNB Chain and would operate alongside the digital version of the national currency, the som.
The new stablecoin, referred to as KGST, is pegged to the som at a 1:1 ratio and is listed in the State Register of Digital Assets. It differs from an earlier dollar-backed token proposal (USDKG) that aimed to rely on gold reserves.
Zhao said the digital som was ready for public sector use. “The digital version of Kyrgyzstan’s currency, the som, is ready for government payments,” he posted. The country has granted the CBDC legal recognition, paving the way for a pilot involving state transactions.
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Building A National Crypto Infrastructure
Kyrgyzstan is developing a broader digital asset framework around the stablecoin and CBDC. The government has set up a national cryptocurrency reserve that includes Binance’s BNB token. It has also expanded training for law enforcement agencies and partnered with Binance Academy to roll out programmes at ten universities.
The state is collaborating with Sign — a project backed by Zhao’s family fund YZi Labs — to develop smart contract infrastructure for future blockchain-based public services. Binance has also localized its app in the Kyrgyz language and held a large-scale community event in Bishkek to support user adoption.
The launch highlights how the country has positioned itself as a crypto-forward market in the region, despite political tensions. Once viewed as the most open society in Central Asia, Kyrgyzstan has seen a tighter political climate since Japarov came to power in 2020.
A snap parliamentary election is set for November 30, with the president’s allies seeking to consolidate control of the legislature. Kyrgyzstan’s drive to formalise and regulate digital assets has been partly influenced by cross-border developments.
