Kyrgyzstan is making significant strides in the digital finance sector with the launch of its national stablecoin on the BNB Chain and the confirmation of a future Central Bank Digital Currency (CBDC) rollout. This move positions the nation as one of the most forward-thinking in Central Asia regarding the adoption of digital assets at a sovereign level.
The government has affirmed that both the national stablecoin and the CBDC are either operational or in the process of becoming so. The stablecoin will operate on the BNB Chain, known for its high speed, scalability, and security. The CBDC will primarily facilitate governmental payments, including payroll, social welfare, and interdepartmental transfers. This dual approach, with a stablecoin for public and business transactions and a CBDC for institutional payments, showcases Kyrgyzstan's commitment to comprehensively digitizing its economy.
Binance and its founder, Changpeng Zhao (CZ), have been instrumental in driving this initiative. CZ signed an agreement with Kyrgyzstan's National Investment Agency in April, pledging collaboration on cryptocurrency and blockchain development within the nation. Binance is contributing through education programs, compliance training, and ecosystem support, integrating blockchain technology into Kyrgyzstan's public infrastructure.
Adding to these developments, Kyrgyzstan has established a National Cryptocurrency Reserve, including Binance's native token, BNB. This inclusion signifies growing institutional trust in blockchain-based assets and further integrates Binance into the country's financial infrastructure.
The new stablecoin, KGST, is pegged 1:1 to the country's Som currency. Farkhat Iminov, head of the crypto council, stated that KGST will be used in international settlements, eliminating the need for double conversion and eventually integrating into the digital Som to enhance its usability abroad. He added that the combination of the digital Som and stablecoin will expand opportunities for cross-border payments and remittances.
Binance has also launched educational and technological initiatives in Kyrgyzstan, including the Binance Academy program in collaboration with 10 leading universities. The Binance app is now fully localized in the Kyrgyz language, and a Binance meeting in Bishkek gathered over 1,000 participants. Furthermore, Binance has partnered with EthSign, a Web3 identity and contract protocol, to develop digital solutions in the blockchain space for Kyrgyzstan.
These developments follow a substantial increase in crypto exchange volume within Kyrgyzstan. In the first half of 2025, the country processed 860 billion Soms in crypto exchange volume, nearly $10 billion USD, representing a 47% increase over the total annual volume of 2024.
