Kyrgyzstan plans to launch its own stablecoin, which will be pegged to the U.S. dollar and backed by gold. The stablecoin is expected to debut in Q3 2025. According to CoinDesk, the stablecoin will be backed by $500 million in gold reserves from the Kyrgyz Ministry of Finance.
The USDKG token will be used for cross-border transactions and international trade with an initial focus on Central Asia and future plans of expanding into Southeast Asia and the Middle East.
The Ministry of Finance plans to expand its gold reserves to $2 billion with planned independent audits for the purpose of ensuring transparency. The stablecoin will be pegged to the U.S. dollar on a one-to-one ratio.
Kyrgyzstan recently partnered with Binance to introduce crypto-payment infrastructure and blockchain education to develop its digital assets sector as per an X post on May 4th by Changpeng Zhao. Binance will introduce contactless crypto payment solution Binance Pay as part of the agreement.
Changpeng Zhao is currently an advisor to the government of Kyrgyzstan on key matters relating to blockchain and cryptocurrency. Kyrgyzstan’s abundant hydroelectric reserves have made it an attractive hub for crypto miners to conduct their operations, as reported by Cointelegraph.