TronWeekly

Crypto World News

You are here: Home / Archives for Kyrgyzstan

Kyrgyzstan

Ex-Binance CEO Changpeng Zhao Advises Kyrgyzstan to Hold BTC, BNB as Reserve Assets

by

  • Changpeng Zhao urged Kyrgyzstan to adopt BTC and BNB as national reserve assets.
  • Binance signed a deal to launch crypto payments and blockchain education in Kyrgyzstan.
  • Kyrgyzstan’s new law enables its central bank to issue a digital version of the som.

Binance co-founder and former CEO Changpeng Zhao has proposed that Bitcoin and Binance Coin (BNB) should be the basis of Kyrgyzstan’s planned national crypto reserve. Zhao posted the suggestion publicly via his official X account on May 5, pointing out that Bitcoin is scarce and that BNB has utility within the Binance ecosystem.

This recommendation follows Zhao’s recent collaboration with Kyrgyzstan’s National Investment Agency (NIA). He confirmed earlier this year that he now advises governments on crypto frameworks and blockchain technology. Zhao called his advisory work “extremely meaningful” and has previously accepted Kyrgyz President Sadyr Zhaparov’s invitation to join the National Crypto Committee.

Kyrgyzstan Deepens Crypto Engagement with Binance Partnership

One day before Zhao’s announcement, Binance signed a memorandum of understanding with Kyrgyzstan’s NIA to launch a crypto payments system using Binance Pay. The partnership also includes a blockchain education program in collaboration with Binance Academy to build crypto literacy in the region.

image 49
Source: Sadyr Zhaparov

Binance CEO Richard Teng confirmed that the exchange has provided crypto reserve advisory services to various state administrations. The global rise in inflation rates and the popularity of digital finance have motivated Kyrgyzstan to become one of the multiple nations exploring crypto reserves as part of their strategic assets.

The Kyrgyz government appears committed to expanding its crypto ecosystem. On April 17, President Zhaparov signed legislation establishing a central bank digital currency (CBDC) pilot program. The new law designates the digital som as legal tender and grants full control of the rollout to the National Bank of the Kyrgyz Republic. The central bank will manage the testing, usage framework, and public launch, with a pilot version expected in 2025.

BNB and Bitcoin Touted as Key Reserve Assets

The foundation of CZ’s recommendation for Bitcoin and BNB in Kyrgyzstan’s crypto reserve is based on trustworthiness and utility. Bitcoin has become known as digital gold because it maintains a store of value due to its fixed supply and decentralized nature. Within Binance’s ecosystem, BNB provides utility that allows users to save on trading fees and execute smart contracts.

As of early May 2025, BNB’s trading volume is approximately $593, while Bitcoin trades above $94,000. According to Zhao, he currently holds about 94 million BNB tokens, about 64% of the circulating supply, which is presently valued at roughly $55 billion.

Kyrgyzstan’s authorities plan to create the Gold Dollar (USDKG) stablecoin supported by $500 million of state-held gold reserves while maintaining its U.S. dollar value. The Ministry of Finance has not publicly announced the initiative, although it represents progress toward implementing digital assets in the financial system.

Kyrgyzstan to Launch USDKG Stablecoin Backed by $500M in Gold

by

  • Kyrgyzstan plans $2 billion in gold-backed reserves for the USDKG stablecoin.
  • USDKG focuses on cross-border transactions in Central Asia.
  • USDKG stablecoin maintains a 1:1 peg to USD, ensuring price stability.

Kyrgyzstan plans to launch a gold-backed USDKG stablecoin in Q3 of 2025. USDKG stablecoin will maintain a 1:1 peg to the U.S. dollar and be backed by $500 million in gold. The Kyrgyz Ministry of Finance has outlined plans to increase the gold reserves to $2 billion. The USDKG stablecoin seeks to promote cross-border payments and trade, especially in Central Asia.

The USDKG stablecoin could strengthen the position of the Republic of Kyrgyzstan across the regional and international markets. The Ministry of Finance emphasizes that USDKG will establish new opportunities to improve the country’s financial infrastructure.

The stablecoin provides fast cross-border payments, especially in areas that experience a high volume of international remittances. The stablecoin can be redeemed in fiat currency, or crypto assets, or physical gold.

USDKG Stablecoin Growth Roadmap

Kyrgyzstan will first roll out its stablecoin in Central Asia and later expand into Southeast Asia and the Middle East. The stablecoin is overcollateralized to reduce the impact of the volatility of Gold. Moreover, USDKG is pegged 1:1 to the U.S. dollar, which makes it independent from gold price fluctuations. This approach seeks to create stable trade and finance market operations.

The USDKG launch demonstrates Kyrgyzstan’s dedication to merging digital and traditional financial systems. The stablecoin structure represents a prevalent trend in digital finance that leverages blockchain advantages and the stability of gold. The Kyrgyzstan government has collaborated with major market players such as Binance to ensure the success of USDKG.

U.S Lawmakers Split Over Stablecoin Legislation

However, USDKG still faces potential difficulties because of global regulatory uncertainty. The shifts in stablecoin regulatory frameworks in major economies such as the United States pose possible risks in this market. The division over stablecoin regulation in the U.S. Senate could hinder the adoption of similar crypto projects in the global market. The lack of a clear regulatory framework could create obstacles for USDKG to function between its international users.

The political division between Democrats and Republican party lawmakers has complicated the establishment of U.S. stablecoin regulation. Some Democrat senators who initially supported the stablecoin legislation, GENIUS Act, have backed down due to a lack of adequate provisions on critical regulatory issues. This political battle could influence the adoption of USDKG across the world since many countries draw guidance from the U.S. digital finance policies.

Kyrgyzstan seeks to prioritize international standards and risk management practices. USDKG’s success depends on the stablecoin’s integration with the global financial network as well as the development of its technical infrastructure.

Related Reading | Litecoin ETF Approval Odds Spike—Is a Major Price Rally Imminent?