Kyrgyzstan launches stablecoin on BNB Chain, confirms future CBDC rollout

Kyrgyzstan has rolled out a new stablecoin pegged 1:1 to the Kyrgyzstani som, while confirming plans to issue a central bank digital currency and explore a digital asset reserve.

The KGST stablecoin will run on the BNB Chain, and BNB (BNB) would be included in the crypto reserve if launched, according to former Binance CEO Changpeng ‘CZ’ Zhao, who attended the National Council for the Development of Virtual Assets and Blockchain Technologies’ second meeting on Friday with President Sadyr Japarov.

The first meeting took place around April, when CZ became a strategic adviser for Kyrgyzstan’s crypto committee.

Local media outlet KG24 said Kyrgyzstan’s crypto committee must ensure the KGST stablecoin is listed on international platforms and submit proposals for creating a national crypto reserve within two months.

Kyrgyzstan’s latest moves highlight how crypto adoption is advancing at the nation-state level by experimenting with stablecoins and CBDCs to modernize payments, improve financial inclusion, boost transparency and attract investment.

Japarov also advised the Ministry of Economy and Commerce to continue crafting a legislative framework for virtual assets and for the National Bank of the Kyrgyz Republic to begin pilot testing of the digital som.

Kyrgyzstan moves forward with CBDC plans

The pilot will run in three stages, building on the National Bank’s demo of the digital som platform built with Build Block TECH. It will first connect commercial banks to enable transfers, then link the Central Treasury for social and government payments, and finally test offline and low-connectivity transactions ahead of a national rollout.