Kyrgyzstan has introduced a new stablecoin, KGST, pegged 1:1 to the national currency, the som.
Additionally, the country has established a national cryptocurrency reserve to support its expanding blockchain ecosystem.
KGST Built on BNB Chain
The newly introduced KGST stablecoin operates on the BNB Chain, one of the world’s largest blockchain networks. The launch ceremony, held last Friday, was attended by President Sadyr Japarov and former Binance CEO Changpeng “CZ” Zhao.
In a post on X (formerly Twitter), Zhao, who has been serving as a strategic adviser to Kyrgyzstan’s crypto committee since April, noted that BNB will be included in the upcoming national crypto reserve.
According to local media outlet KG24, the national crypto committee has been directed to ensure KGST’s listing on international exchanges. Moreover, the committee is expected to submit a detailed proposal for a national crypto reserve within two months.
Kyrgyzstan Plans Digital Som Pilot
Alongside the stablecoin launch, the National Bank of the Kyrgyz Republic (NBKR) has confirmed plans to pilot a central bank digital currency (CBDC). The pilot program, referred to as the digital som project, will unfold in three phases.
The initial phase will connect commercial banks for interbank transfers. The second will integrate the system with the Central Treasury to handle government and social payments. The final stage will test offline and low-connectivity transactions to ensure inclusion in rural areas.
Upon successful completion of all phases, the central bank aims to implement a national rollout. However, the final decision on issuing a CBDC will come after evaluations are completed by 2026.
More than 100 countries are exploring CBDCs. However, only three nations have launched fully operational digital currencies so far: the Bahamas’ Sand Dollar, Nigeria’s e-Naira, and Jamaica’s JAM-DEX, as tracked by CBDCTracker.org.
Building a Foundation for Digital Finance
Moreover, President Japarov has emphasized the importance of education and innovation in supporting the country’s digital transformation. He has directed the Ministry of Science and Higher Education to design programs focused on financial literacy, blockchain technology, and artificial intelligence.
In support, Binance Academy will collaborate with 10 Kyrgyz universities to deliver localized training content. The Binance app will also be fully localized for Kyrgyz users, according to CZ.
Updates from Kyrgyzstan🇰🇬
– The National Stablecoin launched, on @BNBChain
– The CBDC is ready for rollout. Yes, both. CBDC will be used for gov related payments, etc
– The National Cryptocurrency Reserve set up, #BNB included
– LE training
– Binance Academy with 10 top… https://t.co/KPrL0pnsWG pic.twitter.com/SInh5aCPMZ— CZ 🔶 BNB (@cz_binance) October 25, 2025
A Strategic Bet on Transparency and Growth
Kyrgyzstan’s blockchain initiatives aim to attract foreign investment, increase financial transparency, and expand government efficiency. Officials say these digital reforms will also enhance trust in banking and create new economic opportunities.
With the KGST stablecoin now live and CBDC trials on the horizon, Kyrgyzstan is determined to establish itself as a global leader in digital finance innovation.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
