Kyrgyzstan has launched a new stablecoin pegged 1:1 to the national currency, the som, marking its latest step towards wider crypto adoption.
Key points to remember:
- Kyrgyzstan launched its first national stablecoin, KGST, pegged 1:1 to the som and built on the BNB chain.
- Former Binance CEO CZ attended the launch and confirmed plans for a future national crypto reserve and CBDC pilot.
- The National Bank will test the digital som in three phases before deciding on a full deployment by 2026.
The government also confirmed plans to test a central bank digital currency (CBDC) and establish a national crypto reserve.
CZ Joins Kyrgyz President as Nation Launches BNB Chain-Based Stablecoin KGST
The new stablecoin, KGST, runs on the BNB chain, with BNB itself likely to become part of the future crypto reserve, according to former Binance CEO Changpeng “CZ” Zhao.
Zhao joined Kyrgyz President Sadyr Japarov on Friday at the second meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies.
He has been a strategic advisor to the country’s crypto committee since April.
Local newspaper KG24 reported that Kyrgyzstan’s crypto committee had been tasked with securing KGST’s listing on international exchanges and submitting concrete proposals for a national crypto reserve within two months.
The move is part of a broader effort to leverage blockchain and digital assets to modernize the financial system, attract foreign investment and promote transparency in government and banking operations.
The National Bank of the Kyrgyz Republic has confirmed that it will conduct a three-phase pilot of the digital som, building on its previous demonstration with Build Block TECH.
The pilot will begin by linking commercial banks for interbank transfers, followed by integration with the Central Treasury for government and social payments.
The final step will be to test offline and low-connectivity transactions before a national rollout.
“After successfully testing all three phases, the platform will be rolled out nationally and on a large scale,” the central bank said.
Updates from Kyrgyzstan
– The National Stablecoin launched, the @BNBCchain
– The CBDC is ready for deployment. Yes, both. CBDC will be used for government-related payments and more.
– The National Cryptocurrency Reserve established, #BNB Understood
– LE training
– Binance Academy with 10 best… pic.twitter.com/SInh5aCPMZ—CZ
BNB (@cz_binance) October 25, 2025
BNB (@cz_binance) Despite its progress, the bank reiterated that it would only decide whether to issue a CBDC after completing assessments by 2026.
More than 100 countries are currently exploring CBDCs, but only three, Bahamas’ Sand Dollar, Nigeria’s e-Naira and Jamaica’s JAM-DEX, are online, according to CBDCTracker.org.
Focus on education and innovation
President Japarov also directed the Ministry of Science and Higher Education to develop digital financial education programs and train blockchain and AI specialists.
CZ announced that Binance Academy will partner with 10 major Kyrgyz universities and fully localize the Binance app in the country.
The announcement came days after Donald Trump pardoned CZ, who faced charges related to anti-money laundering violations while serving as CEO of Binance.
Zhao pleaded guilty to money laundering violations at the crypto exchange in 2023.
Binance agreed to pay over $4 billion in forfeiture, while Zhao was ordered to pay $50 million in fines in order to resolve the landmark crypto case.
The Binance founder also agreed to step down from his role as CEO of Binance, although this week’s presidential pardon may open the door for him to return to the role.
The post Kyrgyzstan Launches Stablecoin on BNB Chain, Eyes National Digital Currency and Crypto Reserve appeared first on Cryptonews.
