Kyrgyzstan promotes Stablecoin, calls CZ as a Web3 consultant, and presses the “Blockchain Strategy” strategy

Author: Weilin, Panews

The country of Kyrgyzstan in Central Asia appears quietly as a country that deserves attention in terms of innovation and exploration.

On April 15, Kyrgyzstan officially announced that the National Investment Agency during the President’s era signed a strategic memorandum of understanding (Memorandum of Understanding) with the founder of Binance Zhao Changpeng (CZ), which was officially exposed to CZ as an official consultant in the development of the National Blockchain, and the organization of Cryptocurrency and Web3. This news also confirmed the head of Kyrgyz Sader Chaparov on the X platform early April 3.

The Chic Times has officially rented as a consultant, accelerating the Blockchain strategy in Kyrgyzstan

According to the signed memorandum of understanding this time, CZ will provide instructions on the aspirational frameworks of the Kyrgyz government in the field of digital assets, including technical support for infrastructure and policy formulation. Cooperation will also focus on promoting talent training and speeding up the construction of an innovative environment for Defi and Web3 technologies.

Interestingly, on April 4, in response to the news that spread in society that “Kyrgyzstan intends to take the initiative at the opening of a national encoded currency exchange and will use two buildings as trading floors”, Chic Terselnda published an explanation on the X platform: “If buildings are not given, what is the exchange of digital currencies that will use buildings as commercial floors?”

On April 7, President Sader Chaparov replied, “I was busy at the Asian Summit – the Central European Union these days. Finally, I had time to read the comments. I am really happy to see that everyone is very interested in Kyrgyzstan!

Although it was not confirmed whether the two parties would construct a office building jointly, the cooperative relationship between the two parties has clearly increased.

According to the official announcement, the signing of the memo is in line with the comprehensive strategy of Kyrgyzstan to modernize the financial system and build a regional center for digital innovation. According to the official statement of the President’s Office, the development of Blockchain and digital financing have been included as a national priority.

“We welcome global leaders with deep experience who can help build an ascetic and safe ecosystem,” said Sadir Chaparov, President of Kyrgyzstan. “Blockchain and digital financing are a national priority, and this cooperation represents a meaningful step forward.”

In addition to organizational efforts, the Memorandum of Understanding also proposes a number of support initiatives covering education, training on the workforce and exchanging knowledge across the border in the areas related to the fork. These initiatives aim to enhance the development of the country’s environmental system and make Kyrgyzstan in line with the best global practices in organizing virtual assets.

Behind this cooperation, as a result of the continuous promotion of Kyrgyzstan to develop encryption financing in the past three years. Since the 2022 virtual assets law has established a clear legal framework for encryption activities, the country has shown its willingness to adopt the cryptocurrency by launching a national encryption bank and integrating Blockchain technology into its banking system, digital payments and financial supervision. Under the Kyrgyz Act, Bitcoin is a commodity, not security or currency. Mining, buying, selling and trading in local commodity stock exchanges. However, the use of bitcoin as a currency in local settlements is restricted.

According to the Central Asian newspaper on January 7, 2025, the interest of individuals and companies in encrypted currencies in Kyrgyzstan is increasing, but organizing the public market is still weak.

“Given the rapid development of digital technologies and cryptocurrencies, the construction of a coding bank has become an urgent need to integrate encryption assets into the traditional financial system in the country,” said the Ministry of Economy and Trade in Kyrgyz.

The Ministry of Economy and Trade believes that the establishment of a licensed coding bank will help in facing these challenges and increasing the transparency of the market, trust and financial security. Through this step, Kyrgyzstan hopes to attract foreign investment, enhance technological innovation, and provide citizens with safe and organized channels to use encrypted currencies.

The Kyrgyzstan strategy is unique in that it focuses on “licensed encryption banks” that will work under a strict regulatory framework to ensure a safe and safe system.

The decision to promote the creation of licensed encryption banks stems from the great focus on controlling risks. These institutions will coincide with strict regulatory requirements to ensure the safety of user money and personal data. In addition, organizational intervention will also help combat illegal activities such as money laundering and fraud. By integrating encrypted currencies into the banking system, Kyrgyzstan hopes to provide modern financial services to the deprived population.

Kyrgyzstan imposed a tax on encryption mining. The country imposes a 10 % tax on the electricity costs of currency mining activities, which include value -added tax and sales tax. According to the Ministry of Finance, from January to November 2024, Kyrgyzstan collected a total of 46.6 million Somme (about 537,000 dollars) at encryption mining taxes, which is nearly half of the total amount of the entire year from 2023.

Gold -backed Stablecoin launch, what are the most prominent USDKG events?

In addition to the efforts made in organizational and political levels, Kyrgyzstan also explores a mixture of technology and assets. There is an important situation in the launch of the Stablecoin Usdkg from gold. This Stablecoin project, with the support of the Ministry of Finance, is based on Gold Credists, one of the column projects in the Blockchain strategy in Kyrgyzstan.

In Ama recently, two project advisers, William Campbell and Jabriel, did not have a more detailed introduction to the project. Usdkg credibility comes from its state -backed structure. Stablecoins is released only on the basis of new gold reserves, thus preventing the risk of arbitrary version and inflation risk. The total value of the golden guarantee is $ 500 million in the initial stage, which is expected to rise to two billion dollars within 24 months, which increases its long -term stability.

Transparency is a basic principle of USDKG design. Each USDKG is supported with material gold, which is stored in an audited and safe cellar. The regular third -party audits and the general reserve proving system include full transparency. This distinguishes usdkg from the private Stablecoins that was interrogated to the unusual reserve management.

The spokesperson clearly defined the role of the state in the project. “The role of the Ministry of Finance in Kyrgyz is limited to providing gold reserves. The rest of the development, scrutiny and maintenance are made by private companies and individuals,” Campbell explained.

Usdkg will be launched on Ethereum first, with plans to expand other chains with adoption growth. “We create an international balance with a long -term vision to compete with the main Stablecoins such as USDC and USDT,” Campbell said.

Usdkg is not only a way to store value, but it is also expected to become an important tool for trade, transactions and border transfers. For countries like Kyrgyzstan, which rely heavily on external transfers, USDKG provides a low -cost and highly efficient alternative to traditional banks. In addition, USDKG is designed to operate on central and decentralized stock exchanges, ensuring wide access and used by institutions and retail investors.

StableCoin Stablecoin is placed as a border payment store, as transfers represent about 30 % of the country’s gross domestic product. By merging into the financial ecosystem, USDKG provides low -cost international transactions, making it easier for workers abroad to send money to the home.

The first step to merge the USDKG into the local financial system will be to connect it to the Kyrgyz banks and institutions and make it a legal tender in the country. Once this is created, it will be expanded to other Central Asian markets. “The Central Asian market is definitely the goal, but we are also interested in Southeast Asia and the Middle East, as it has the support of gold with the important economic and cultural value.”

Usdkg will also be included in the exchange of global cryptocurrency, allowing lending, cultivation and other activities. According to Campbell, users will have three redemption options: “Anyone with a USDKG can recover material gold in Kyrgyzstan, recover cryptocurrencies such as USDT, or pull a FIAT through the traditional banking system.”

It is competing with neighboring countries, the regulatory framework of encryption becomes a new focus of economic policy in Central Asian countries

It should be noted that Kyrgyzstan is not the only country in Central Asia to take the step of organizational exploration. A member of the House of Representatives in Parliament in Kazakhstan recently called on the government to create a national encoding bank as a central platform for custody and the circulation of legal digital assets. Parliament member Azat Biruchiev said that the lack of a clear organizational infrastructure led to continuous growth of illegal encryption activities, and most transactions occur outside the official regulatory system. He believes that the state -led institutions will help reduce tax evasion, fraud and external flows through unorganized platforms.

Biruchiv suggested that the National Bank and licensed financial institutions will participate in the project, and to define it as a necessary measure to deal with the abuse of encryption assets on a large scale. He pointed to unofficial data that up to 90 % of encryption transactions in Kazakhstan are in the “gray zone”, and huge amounts of capital flow outside the country without auditing.

Meanwhile, Uzbekistan fiercely traded and established a national organizational mechanism to manage this industry. Another thing we look forward to in the future is whether Kyrgyzstan will follow the Salvador and make Bitcoin a legal tender where the organization and the friendly position are created towards encrypted currencies.

The accelerated investment in the encryption industry and the relevant regulatory policies by many Central Asian countries represents a change in the country’s position towards digital infrastructure – is no longer just a financial tool, but it is also seen as a means of national rule. Blockchain technology is integrated into the general planning of national modernization and Geostrategy, and subsequent developments worth more attention.