Kyrgyzstan has launched a new stablecoin pegged to its national currency, the som, and legally recognized its central bank digital currency, the digital som, for potential government payments. The moves, supported by cryptocurrency exchange Binance, aim to position the Central Asian nation as a regional crypto leader. Binance co-founder Changpeng Zhao, now an adviser to President Sadyr Japarov, confirmed the developments.
Kyrgyzstan is advancing its cryptocurrency ambitions with the launch of a national stablecoin, KGST, pegged 1:1 to the som and registered in the State Register of Digital Assets. This initiative differs from a previously planned dollar-backed stablecoin, USDKG, supported by $500 million in gold reserves from the Kyrgyz Ministry of Finance and slated for a Q3 rollout.
The country has also given legal recognition to its central bank digital currency, the digital som, with plans to pilot it for government-related payments. This follows an April decision by President Sadyr Japarov to amend constitutional law, granting the digital som legal tender status upon full launch by the National Bank.
Binance co-founder and former CEO Changpeng Zhao, who serves as an adviser to the president, highlighted these steps as part of a broader national cryptocurrency strategy. Kyrgyzstan has established a national cryptocurrency reserve that includes BNB tokens. Additional efforts include law enforcement training programs, partnerships with Binance Academy to integrate crypto education into curricula at 10 universities, and collaboration with Sign—a firm invested in by Zhao's family fund, YZi Labs—on smart contract infrastructure.
Binance has further supported adoption by localizing its app in the Kyrgyz language and hosting a 1,000-person meetup in the capital, Bishkek. With a population of about 7 million, Kyrgyzstan seeks to lead Central Asia in cryptocurrency innovation ahead of snap parliamentary elections on November 30.