Kyrgyzstan passed new crypto laws, launched a US dollar–pegged stablecoin backed by physical gold, and announced plans to create a national crypto reserve.
Kyrgyzstan President Sadyr Japarov said a newly launched stablecoin tied to the country’s currency has been listed on Binance, one of the world’s largest cryptocurrency exchanges.
In a post on X on Wednesday, Japarov said the KGST stablecoin, which is pegged to the Kyrgyz som, will help improve cross-border payments and strengthen the country’s links to the global crypto market. Binance founder Changpeng “CZ” Zhao also commented on social media, saying more government-backed stablecoins are expected to be listed on the exchange.
Zhao began advising Kyrgyzstan in April under an agreement to provide technical support and consulting services related to digital assets.
The Central Asian country, home to about 7 million people, has been stepping up its support for cryptocurrencies. In September, lawmakers moved forward with legislation aimed at building a state-backed crypto reserve and growing the local digital asset sector.
Kyrgyzstan has also launched USDKG, a stablecoin pegged to the US dollar and backed by physical gold. The token was first issued on the Tron blockchain with an initial supply of 50 million and is expected to expand to Ethereum in the future.
Globally, more countries are exploring stablecoins linked to their local currencies. While dollar-backed stablecoins like USDT and USDC still dominate the market, governments and financial institutions in Japan, Europe, and the Middle East have announced plans to roll out their own regulated digital currencies in the coming years.
Featured image from: cointelegraph.com