Digital som testing begins in Kyrgyzstan

According to the new regulations, the digital som is now officially recognized as a legal means of payment within the country. The National Bank has received the exclusive right to issue it, and all transactions with the new currency will be carried out through a special platform, the operator of which is also the regulator itself.

For the effective functioning of the digital som, the National Bank will develop separate rules for settlements that must be observed by commercial banks and other participants in the financial system. These rules will regulate the mechanisms for making payments, as well as interaction with the digital asset at all stages of its circulation.

Particular attention is paid to security issues. The regulator intends to introduce modern means of cryptographic protection in order to minimize the risks of fraud and prevent unauthorized transactions with digital currency.

The initiative to launch a digital som reflects Kyrgyzstan's desire to digitalize the financial sector and actively participate in global trends related to the introduction of central bank digital currencies (CBDC). It also demonstrates the state's desire to increase the transparency of financial transactions, simplify money transfers, and ensure greater accessibility of financial services for the population.

It is worth noting that in April this year, the founder of the Binance cryptocurrency exchange, Changpeng Zhao, was brought in as a consultant to the Kyrgyz government. His knowledge and experience in the field of blockchain technologies and digital assets likely played a role in the development and launch of the project.

Thus, Kyrgyzstan is becoming another country that has taken a course on integrating central bank digital currencies into the national economy. Successful completion of the pilot stage may lead to a full-fledged launch of the digital som in the near future.