Kyrgyzstan is preparing to launch a stablecoin and national digital currency.
Date: 2025-10-27 Author: Henry Casey Categories: IN WORLD
Kyrgyzstan intends to strengthen its position in digital finance by issuing the KGST stablecoin, pegged to the national currency, the som. The project will be implemented on the BNB Chain blockchain. President Sadyr Japarov announced that the country is simultaneously beginning the pilot phase of its own digital currency (CBDC).
On October 24, the head of state held a meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies, where he instructed the government to expedite the launch of the stablecoin and explore the possibility of listing it on international exchanges. Furthermore, government agencies were instructed to submit proposals for the formation of a national cryptocurrency reserve within two months.
Changpeng Zhao (CZ), founder of Binance, participated in the discussion of the initiative and confirmed that the national stablecoin has already been successfully launched and that testing of the CBDC will begin soon. According to Zhao, Kyrgyzstan is creating a financial infrastructure that will include a cryptocurrency reserve, including the BNB token.
"Both instruments—the stablecoin and the digital currency—will be used for government payments and other financial transactions," explained CZ. He also noted that Binance is participating in the project as a minority investor, focusing on advising the government and building the necessary blockchain infrastructure.
As a reminder, back in April, Changpeng Zhao officially became an advisor to the Kyrgyz government on cryptocurrency and blockchain development. Analysts believe this collaboration could be an important step toward the digital transformation of the country's economy and its integration into the global crypto space.
The KGST stablecoin and national CBDC project aims to improve the efficiency of government payments, reduce transaction costs, and ensure more transparent cash flow management. Furthermore, the authorities hope that the launch of digital assets will attract foreign investors and accelerate the adoption of blockchain technologies in Kyrgyzstan's financial sector.
This makes the country one of the first Central Asian states to officially launch its own stablecoin, which could serve as an example for neighboring countries considering the introduction of digital currencies.
