Kyrgyzstan Launches Som-Pegged Stablecoin, Establishes National Crypto Reserve

Kyrgyzstan has launched KGST, a stablecoin pegged to its national currency, while simultaneously advancing a central bank digital currency pilot in one of the most comprehensive digital finance initiatives undertaken by a Central Asian nation.

President Sadyr Japarov chaired a meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies on Friday where officials announced the stablecoin launch and outlined plans for a national cryptocurrency reserve that will include BNB tokens.

Former Binance CEO Changpeng Zhao attended the meeting and confirmed the developments on social media. "The National Stablecoin launched, on BNB Chain. The CBDC is ready for rollout. Yes, both," Zhao wrote, noting that the digital som will handle government-related payments while the stablecoin operates on public blockchain infrastructure.

The KGST stablecoin maintains a 1:1 peg with the Kyrgyzstani som and operates on BNB Chain. The crypto committee received instructions to secure international exchange listings for KGST and draft a cryptocurrency reserve proposal within two months, according to local news outlet KG24.

Kyrgyzstan's dual-track approach separates government payment functions through a central bank digital currency (CBDC) from broader digital finance applications supported by the stablecoin. The National Bank of the Kyrgyz Republic will conduct a three-phase digital som pilot using a platform developed with domestic blockchain firm Build Block TECH.

The pilot's initial phase connects commercial banks for interbank transfers, followed by integration with the Central Treasury for government and social payments. The final stage tests offline and low-connectivity transactions before potential nationwide deployment. The central bank previously indicated it would decide on full CBDC issuance by end-2026.

If launched nationally, the digital som would join a small group of operational central bank currencies including the Bahamas' Sand Dollar, Nigeria's e-Naira, and Jamaica's JAM-DEX, according to cbdctracker.org data.

President Japarov directed the Ministry of Economy and Commerce to continue developing the legislative framework for virtual assets and coordinate CBDC implementation with the central bank. The Ministry of Science, Higher Education and Innovation received instructions to prepare blockchain and digital asset training programs.

Zhao announced that Binance Academy will partner with 10 Kyrgyz universities to provide localized blockchain courses and integrate cryptocurrency curriculum into higher education programs. The Binance application will also receive full localization for Kyrgyz users.

"Also proud to have brought @ethsign to work with Kyrgyzstan. They did a good job! @yzilabs is a minority investor. We like to provide real strategic value in addition to just investing in money," Zhao wrote.

The education initiatives expand Binance's Central Asian programs following similar partnerships in Kazakhstan and Uzbekistan. A Binance meetup in Bishkek attracted over 1,000 participants, according to Zhao.

The National Council for the Development of Virtual Assets and Blockchain Technologies was established earlier in 2025 to oversee blockchain development, crypto market regulation, and CBDC testing. The body coordinates digital finance policy across multiple government ministries and the central bank.

Kyrgyzstan's initiatives occur as global stablecoin and CBDC development accelerates. Over 100 countries are researching or developing central bank currencies, though few have reached full deployment. In Asia, Hong Kong, China, and Singapore conduct CBDC pilots, while Kazakhstan and Uzbekistan have begun limited stablecoin trials with private sector partners.

The announcements coincided with Zhao's return to public events following a pardon from U.S. President Donald Trump related to anti-money laundering violations. His presence in Bishkek underscores Binance's continued influence in Central Asian policy circles as the region positions itself as a regulated destination for crypto infrastructure development.