- Kyrgyzstan launched the KGST stablecoin pegged 1:1 to its national som currency.
- The country also began testing a separate Central Bank Digital Currency called the digital som through a three-phase pilot program.
- The government processed nearly $10 billion in crypto exchange volume during the first half of 2025.
Kyrgyzstan has launched a new stablecoin pegged to its national currency. On Friday, President Sadyr Japarov announced the opening of KGST. The stablecoin maintains a 1:1 peg with the som.
This announcement followed a meeting attended by Changpeng Zhao, the founder of Binance. This marks the second session of the National Council of Kyrgyzstan on the Development of Virtual Assets and Blockchain Technologies.
In April, Zhao signed a deal with the National Investment Agency of Kyrgyzstan. The alliance majors in cryptocurrency and blockchain creation in the country. This partnership has now taken a tangible form of digital asset programs.
Government Decrees Target Digital Asset Framework
President Japarov issued several cryptocurrency-related orders during the council meeting. The Ministry of Economy was tasked with improving the legislative environment for digital assets. The government is demanding thorough regulatory transparency.
The president also instructed the council to present suggestions for a state cryptocurrency reserve. The officials have a two-month deadline to present their recommendations. According to Zhao’s announcement on X, the reserve will contain BNB tokens.
Updates from Kyrgyzstan🇰🇬
– The National Stablecoin launched, on @BNBChain
– The CBDC is ready for rollout. Yes, both. CBDC will be used for gov related payments, etc
– The National Cryptocurrency Reserve set up, #BNB included
– LE training
– Binance Academy with 10 top… https://t.co/KPrL0pnsWG pic.twitter.com/SInh5aCPMZ— CZ 🔶 BNB (@cz_binance) October 25, 2025
The National Bank was given individual orders to start pilot testing of the digital som. This Central Bank Digital Currency is not based on the KGST stablecoin. The two digital currencies serve different purposes within the national financial system.
Three-Phase Digital Som Rollout Plan
The National Bank described a pilot program, which would be conducted in three phases for the digital som. The initial step will involve linking the National Bank to the commercial banks. This phase allows primitive transfer facilities among financial entities.
Phase two will involve integrating the Central Treasury into the system. Such a growth permits social and government payments using the digital currency. Through the new platform, citizens will receive official payments
The last stage is the test of offline and low-connectivity payment abilities. This is a characteristic that will solve the problem of connectivity in rural locations. The technology also aims for high accessibility in different geographic areas.
The National Bank declared that a fully deployed national implementation will occur after all phases are successfully implemented. The bank collaborated with Build Block TECH to develop the pilot CBDC. The platform will be rolled out nationally upon completion of the testing.
Farkhat Iminov is the chairman of the Secretariat of the Crypto Council. He reported significant cryptocurrency exchange volume within Kyrgyzstan. In the first half of 2025, the country processed 860 billion soms.
This volume represents nearly $10 billion USD. The number reflects a 47% increase over the entire 2024 volume. The increment reflects the increased adoption of cryptocurrencies by individuals and corporations.
The price of BNB tokens rose slightly following the announcements. At the time of writing, BNB was trading at $1,144, representing a 1.49% increase over the past 24 hours.
