President Sadyr Zhaparov has announced that Kyrgyzstan’s new digital currency, KGST, is now available on Binance. This stablecoin is designed to have the same value as the Kyrgyz som, acting as a digital form of the country’s official currency.
- Kyrgyzstan has listed its som-pegged stablecoin, KGST, on a major global crypto exchange
- KGST is backed 1:1 by the national currency and runs on a public blockchain
- The project represents a rare state-linked alternative to privately issued stablecoins
National currency enters crypto markets
As I understand it, the president has confirmed that KGST is fully backed by the som and built on the BNB Chain. What’s particularly interesting about this listing is that it’s unusual to see a stablecoin directly tied to a national currency – rather than a private entity – being offered on a major global exchange.
President Zhaparov hailed the launch as a key milestone in Kyrgyzstan’s plan for digital finance, praising the team and everyone involved in making it happen. He believes the new stablecoin will broaden the use of the Kyrgyz som for online payments and other financial activities using blockchain technology.
Shift away from privately issued stablecoins
Most stablecoins currently available are created by private companies and rely on their own reserves, typically in U.S. dollars, to maintain their value. KGST is different – it’s backed directly by a country’s official currency, rather than a company’s holdings.
As regulators worldwide consider new rules for creating stablecoins – including options where banks take the lead under government supervision – a stablecoin backed by a national government offers a different approach. Instead of relying on the trustworthiness of a company, it relies on the backing of a country, which could be attractive to governments wanting greater control over how digital currencies are used.
Regional first with cross-border ambitions
President Zhaparov announced that KGST is the first stablecoin from a Commonwealth of Independent States country to be available on a major international cryptocurrency exchange. This project aims to not only represent a symbolic achievement, but also to make international payments easier and connect Kyrgyzstan’s currency more closely with the global digital asset market.
Kyrgyzstan is experimenting with a new digital currency linked to its national currency, the som, by making it available on global cryptocurrency markets. This is a test to see if a country’s currency can successfully compete with popular dollar-backed stablecoins on public blockchains. Whether this experiment succeeds will depend on how widely the currency is used, how easily it can be traded, and how other nations react to this approach.
This article is just for informational and educational purposes, not financial or investment advice. Coindoo.com doesn’t recommend any particular investment or cryptocurrency. Before you make any investment decisions, be sure to do your own research and talk to a qualified financial advisor.
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2025-12-24 22:53