Kyrgyzstan Launches National Stablecoin as Central Asian Blockchain Hub

Bishkek, Kyrgyzstan — Kyrgyzstan has launched a national stablecoin, KGST, and plans to develop a digital version of its currency, the som, marking a significant advancement in the country’s digital finance strategy. These initiatives signal Kyrgyzstan’s ambition to become a central hub for blockchain innovation in Central Asia.

The KGST stablecoin, pegged 1:1 to the Kyrgyzstani som, is now operational on the BNB Chain. This project is among the first government-backed stablecoin efforts in the region. Changpeng Zhao, former CEO of Binance, confirmed the launch details during a recent visit to Bishkek, where President Sadyr Japarov presided over the announcement by the National Council for the Development of Virtual Assets and Blockchain Technologies.

During the meeting, the council also assigned the Kyrgyz Crypto Committee the task of drafting a proposal for a national cryptocurrency reserve. This proposal is due within two months and aims to enhance the use of digital assets in the country.

Kyrgyzstan is not only promoting the KGST but is also initiating a three-phase pilot program for the digital som, working with local blockchain company Build Block TECH. The National Bank of the Kyrgyz Republic outlined the rollout plan, which is set for nationwide distribution, pending successful testing, with full deployment expected by 2026.

If the digital som is implemented, it would join a growing list of state-backed digital currencies, including Nigeria’s e-Naira and Jamaica’s JAM-DEX.

President Japarov has prioritized digital finance education in the country. He has instructed the Ministry of Science, Higher Education, and Innovation to develop blockchain training programs. Binance Academy will collaborate with ten local universities to provide courses on blockchain and digital assets, further embedding crypto education in the nation.

In addition, the Ministry of Economy and Commerce is working on new regulations for virtual assets, aiming to support the CBDC pilot project, reinforcing cooperation with the National Bank.

Zhao’s visit highlights Binance’s commitment to the region. He noted on social media, “I encourage more crypto companies to explore the country too,” emphasizing Kyrgyzstan’s potential in digital finance.

With the launch of the KGST and the digital som pilot, Kyrgyzstan is taking significant steps to establish itself as a leader in digital finance within the region.