The government plans to create a cryptocurrency reserve in Kyrgyzstan and introduce a "digital som" in addition to the token based on the US dollar exchange rate.
At the Token2049 conference in Dubai, Gabriel Guerra, a consultant on the project, told CoinDesk that Kyrgyzstan plans to launch the USDKG stablecoin, a gold-backed token based on the US dollar exchange rate, in the third quarter of 2025. Cross-border transfers are the main intended use for the stablecoin.
According to Guerra, the project is being implemented with the assistance of the Kyrgyz Ministry of Finance, which will contribute USD 500 million in gold as a reserve for the token.
He said there are plans to increase the stablecoin budget to USD 2 billion in the future. An impartial audit of USDKG's reserves will be conducted.
"The stablecoin will be used for cross-border transactions and international trade with a focus on Central Asia, with expansion to Southeast Asia and the Middle East planned for a later date," Guerra said.
The Kyrgyz authorities are actively developing the digital asset sector. On 3 May, Kyrgyz President Sadyr Japarov met with Changpeng Zhao, founder of the largest cryptocurrency exchange platform, Binance.
According to a statement on the official website of Kyrgyzstan's president, the parties discussed cybersecurity and the fight against online dangers, as well as the country's development of virtual assets and blockchain technology. Zhao had previously served as an official advisor to the president of Kyrgyzstan on the creation of digital assets. Japarov presented him with a certificate during the conference.
On 4 May, Binance signed a Memorandum of Understanding with the National Investment Agency under the President of Kyrgyzstan. The signing took place in the presence of Japarov as part of the first meeting of the Digital Asset Development Council.
The agreement provides for the development of a strategic partnership in the field of digital assets. The agency's director, Farkhat Iminov, identified the creation of a digital som and the release of a stablecoin as priority areas for the future.
Kyrgyzstan will establish a cryptocurrency reserve in partnership with Binance and BNB Chain
The establishment of a cryptocurrency reserve in Kyrgyzstan will also be a crucial task. International experience will be examined in this regard, Iminov said, and work will begin with Binance and partners at BNB Chain to decide on the asset distribution model, risk assessment and structure of the cryptocurrency reserve, as well as implementing international standards of security and transparency.
Changpeng Zhao had previously urged governments around the world to moderate their stance on cryptocurrencies. The creator of Binance believes that most governments should be more forward-thinking than the US, as the US is so active in growing the cryptocurrency industry that all other nations need to be a little more competitive to attract investment, retain talent and attract capital.
