- Kyrgyzstan launches KGST stablecoin, pegged 1:1 to the som, to simplify international transactions.
- The National Bank of Kyrgyzstan begins pilot testing a digital som as a Central Bank Digital Currency (CBDC).
- Kyrgyzstan creates a state cryptocurrency reserve, including BNB tokens, to integrate cryptocurrencies into its economy.
Kyrgyzstan is taking a notable step towards digital currency adoption by launching a national stablecoin and planning a Central Bank Digital Currency (CBDC). The Central Asian nation has formed a joint effort with Binance founder Changpeng Zhao, also known as CZ, to support these efforts. The KGST stablecoin, pegged to the som, Kyrgyzstan’s national currency, will play arole in this digital transformation.
Stablecoin KGST and Its Role in the Economy
On October 20, 2025, President Sadyr Japarov announced the launch of the KGST stablecoin, which is pegged 1:1 to the Kyrgyz som. This move follows a meeting between Japarov and CZ, the founder of Binance.
KGST aims to simplify international transactions by removing the need for double conversions. The stablecoin will be used in global settlements, expanding Kyrgyzstan’s role in cross-border payments and remittances.
The stablecoin launch comes after a partnership signed earlier this year between the Kyrgyz government and CZ. CZ made a promise in April to offer help with the country’s development in crypto and blockchain tech. The aim is to establish a digital system that enable and facilitate both local and international transactions as well as improve financial infrastructure.
Digital Som and the Future of Kyrgyzstan’s Economy
Alongside the KGST stablecoin, the country plans to roll out a digital version of its som. The National Bank of Kyrgyzstan will begin pilot testing the digital som as a CBDC. The testing will be conducted in three phases.
The first phase will connect the National Bank with commercial banks to allow for simple transfers. The second phase will include the Central Treasury for government and social payments. The third phase will explore offline payments for low-connectivity areas.
Once the pilot is completed successfully, the National Bank intends to scale the CBDC for nationwide use. The digital som aims to enhance the efficiency of Kyrgyzstan’s financial system and expand payment options for its citizens.
Kyrgyzstan’s Cryptocurrency Reserve
The state is going to set up a state cryptocurrency reserve, which further underlines the country’s dedication to digital finance. This reserve, as per CZ, will incorporate BNB tokens. The reserve will form part of the larger strategy of the nation to adopt cryptocurrencies as a means of economic activity.
Farkhat Iminov, who is in charge of the National Council for the Development of Virtual Assets, has stated that during the first six months of 2025, crypto transactions in the country amounted to 860 billion soms, which is nearly $10 billion USD. This is a 47% rise in crypto trade compared to the year 2024.
Kyrgyzstan’s trailblazing with digital money, such as the KGST stablecoin and the digital som, is a big step for the country’s economic modernization. It is an advance that will undoubtedly enhance Kyrgyzstan’s status in the global financial system.
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