Kyrgyzstan has officially introduced the KGST stablecoin, pegged 1:1 to the national currency, the som, and built on the BNB Chain. Authorities also confirmed ongoing preparations for a central bank digital currency (CBDC) and the creation of a national crypto reserve.
The KGST project is being implemented with the support of Changpeng Zhao (CZ), former CEO of Binance, who now serves as a strategic advisor to the country’s crypto committee. According to CZ, the decisions were made during a National Council meeting on virtual asset development, attended by President Sadyr Japarov.
Local media report that the committee has two months to submit proposals for the digital asset reserve and ensure that KGST is listed on international exchanges. The government aims to leverage stablecoins and CBDC initiatives to stimulate the digital economy and attract investment.
President Japarov instructed the government to continue developing virtual asset legislation, while the National Bank has been tasked with piloting the digital som. The rollout will occur in three phases: first, integrating commercial banks; next, linking with the Central Treasury; and finally, testing offline transactions before the full CBDC launch.
According to regulators, once the pilot program succeeds, the digital som platform will be rolled out nationwide. Previously, the bank indicated that the final decision on the CBDC launch would not take place before 2026.
In addition, Kyrgyzstan is investing in digital education. CZ noted that the president has asked ministries to create programs for financial literacy and blockchain and AI training. Binance Academy will introduce its courses at ten leading universities in the country.
CZ emphasized that localizing educational initiatives alongside stablecoin implementation will be key for Kyrgyzstan to become one of the first fully digital financial infrastructures in the region. The government also plans to transition all public services to blockchain by 2028.
