- Kyrgyzstan officially launched KGST, a stablecoin pegged 1:1 to the som, as part of a legislative package known as the “digital storm.”
- The country is also piloting a separate Central Bank Digital Currency (CBDC), the “digital som,” which will be tested in three phases for government and social payments.
- Binance founder Changpeng Zhao (CZ) attended the announcement and stated that BNB will be included in the planned national cryptocurrency reserve.
Kyrgyzstan has officially introduced KGST, a stablecoin pegged 1:1 to the som, according to President Sadyr Japarov.
Japarov announced the news Friday after a meeting that included Binance founder Changpeng Zhao (CZ). The rollout follows the second session of the National Council for the Development of Virtual Assets and Blockchain Technologies.
Crypto News Australia reported that Kyrgyzstan’s parliament approved a package of crypto measures, known as the “digital storm”. First, the economy ministry will draft upgrades to the digital-assets legal framework, while the council must submit proposals within two months for a state cryptocurrency reserve.
Moreover, the National Bank will begin piloting a central bank digital currency (CBDC), the “digital som,” which is separate from KGST.
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Kyrgyzstan Sets Three-Phase Pilot for Digital Som CBDC
The CBDC pilot will run in three stages: first, linking the National Bank with commercial banks for transfers; second, adding the Central Treasury for social and government payments; third, testing offline or low-connectivity transactions. After successful tests, the platform will go live nationwide. The National Bank developed the pilot with Build block TECH.
Zhao previously signed an April cooperation agreement with Kyrgyzstan’s National Investment Agency to support crypto and blockchain development. He said on X that BNB will be part of the planned national crypto reserve, though formal proposals have not been disclosed.
Farkhat Iminov, who leads the council’s Secretariat, reported 860 billion soms in exchange volume in H1 2025, described as nearly US$10 billion (AU$16.0 billion), up 47% versus all of 2024.
It should be noted that Trump recently granted CZ a full pardon, and while that doesn’t erase the criminal record (that’s a whole different process), it puts the Binance founder back in the game by restoring his rights.
The BNB price is currently at US$1,141 (AU$1,750), a modest increase of 2% in the last 24 hours, as per CoinMarketCap data.
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