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Kyrgyzstan issues KGST stablecoin on BNB Chain
Kyrgyzstan has launched KGST, a new national stablecoin pegged 1:1 to the Kyrgyzstani som, and announced plans to issue a central bank digital currency (CBDC) while exploring a national crypto reserve. The KGST token will operate on the BNB Chain, and BNB would be included in the proposed digital asset reserve, according to Changpeng Zhao (CZ), the former CEO of Binance, who participated in the National Council for the Development of Virtual Assets and Blockchain Technologies meeting alongside President Sadyr Japarov.
Strategic advisory role and next steps
CZ joined Kyrgyzstan’s crypto committee as a strategic adviser earlier this year. Local reporting from KG24 says the committee has been given a tight timeline: list the KGST stablecoin on international exchanges and present proposals for establishing a national crypto reserve within two months. These steps aim to increase liquidity, improve access to digital payments, and integrate the stablecoin into cross-border and domestic payment rails.
CBDC pilot program and phased rollout
The National Bank of the Kyrgyz Republic is moving forward with pilot testing of a digital som, developed with Build Block TECH. The pilot is structured in three stages: first, connect commercial banks to enable peer transfers; second, integrate the Central Treasury to handle social and government payments; third, test offline and low-connectivity transactions to ensure resilience in areas with limited internet access. If each phase succeeds, the bank plans to scale the platform nationwide.
Although the National Bank previously indicated it would not decide on issuing a CBDC until the end of 2026, leadership now appears to be accelerating pilot activities to modernize payments, foster financial inclusion, and enhance transparency.
Education, regulation, and capacity building
President Japarov urged the Ministry of Economy and Commerce to continue drafting a regulatory framework for virtual assets. He also directed the Ministry of Science, Higher Education and Innovation to develop digital financial literacy programs and train specialists in blockchain and AI. CZ noted plans to integrate Binance Academy content with ten top Kyrgyz universities and fully localize the Binance app for the country to support education and workforce development in crypto.
Why this matters for global crypto markets
Kyrgyzstan’s dual approach — issuing a national stablecoin while piloting a CBDC and considering a crypto reserve — reflects a broader trend of nation-states experimenting with tokenized money and digital asset policy. If implemented, these measures could boost payment efficiency, improve government disbursements, and attract crypto-focused investment to the region. Observers will watch how regulatory safeguards, AML/CTF compliance, and technical resilience are addressed during the pilot and rollout phases.
As Kyrgyzstan advances its blockchain agenda, the integration of stablecoins, CBDCs, and educational initiatives indicates a comprehensive push to modernize the country’s digital finance infrastructure and support sustainable crypto adoption.
Source: cointelegraph
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