Kyrgyzstan has introduced a new stablecoin, KGST, pegged 1:1 to the national currency, the som, while confirming plans for a central bank digital currency (CBDC) and exploring a national digital asset reserve.
The KGST stablecoin will operate on the BNB Chain, with BNB potentially included in the crypto reserve if implemented, according to former Binance CEO Changpeng ‘CZ’ Zhao. CZ attended the second meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies with President Sadyr Japarov on Friday.
Local media report that the crypto committee must ensure KGST is listed on international platforms and submit proposals for a national crypto reserve within two months.
CBDC Pilot Program
The National Bank of the Kyrgyz Republic is piloting the digital som in three phases:
- Connecting commercial banks for transfers
- Linking the Central Treasury for social and government payments
- Testing offline and low-connectivity transactions
Following successful trials, the digital som platform will be rolled out nationally and scaled, the bank said. Kyrgyzstan initially planned to decide on a CBDC by the end of 2026.
Educational Initiatives
President Japarov also instructed the Ministry of Science, Higher Education, and Innovation to develop digital financial literacy programs and train blockchain and AI specialists. CZ confirmed plans to integrate Binance Academy with 10 top universities in Kyrgyzstan and fully localize the Binance app in the country.
Kyrgyzstan’s initiatives reflect a broader trend of state-level adoption of crypto and CBDCs to modernize payments, improve financial inclusion, and attract investment.
This development comes shortly after CZ was pardoned by U.S. President Donald Trump over past anti-money laundering violations while he was Binance CEO.