Kyrgyzstan announced the launch of the KGST stablecoin backed by the national currency at a 1:1 ratio. The authorities also confirmed that they are preparing to launch a central bank digital currency (CBDC). In parallel, a national crypto reserve is planned, which will include BNB and other assets.
Stablecoin operates on the BNB Chain blockchain. According to Changpeng Zhao (CZ), former head of Binance and strategic advisor to the Kyrgyz cryptocurrency committee, the relevant decisions were made at a meeting of the National Council for the development of virtual assets with the participation of President Sadyr Zhaparov.
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
Local media specified that the committee is to submit proposals within two months to create a digital asset reserve and ensure that the KGST token is listed on international platforms. Thus, the country intends to use stablecoins and CBDC to develop the digital economy and attract investments.
Zhaparov instructed the government to continue developing legislation on virtual assets and the National Bank to start pilot testing of the digital som. The project will be implemented in three stages.
First, commercial banks will be connected, after which the asset will be integrated with the Central Treasury. At the end, offline transactions will be tested before the full-fledged launch of CBDC.
According to the regulator, after the successful completion of the pilot program, the digital som platform will be rolled out across the country. The bank had earlier said that a final decision on the launch of CBDC is not expected before 2026.
In parallel, Kyrgyzstan is betting on digital education, CZ noted. The president has instructed ministries to develop programs to improve financial literacy and train specialists in blockchain and artificial intelligence. Binance Academy will launch its courses at ten leading universities in the country.
Changpeng Zhao noted that the localization of educational initiatives and the introduction of stablecoins will be the key to Kyrgyzstan becoming one of the first countries in the region with a full-fledged digital financial infrastructure.
Recall, we wrote that the Kyrgyz authorities will transfer all public services to blockchain by 2028.