**Kyrgyzstan Launches Stablecoin and Begins Digital Currency Testing**

Kyrgyzstan has officially introduced a new stablecoin called KGST. This digital currency is backed 1:1 by the Kyrgyzstani som, meaning its value matches the national currency exactly. The KGST runs on the BNB Chain and is part of the country’s larger push to build a strong digital finance system and test the use of a central bank digital currency (CBDC).

President Sadyr Japarov led a recent meeting on blockchain and digital assets. Notably, former Binance CEO Changpeng “CZ” Zhao also attended. During the meeting, it was decided that KGST should be listed on global crypto exchanges. The government also plans to create a national crypto reserve in the next two months, which will include BNB as one of its assets.

The main goals of this initiative are to modernize how payments work in Kyrgyzstan, give more people access to financial services, and bring in more investment to the fintech sector. A new national council was formed earlier this year to oversee blockchain development, regulate cryptocurrency, and test the CBDC.

**Digital Som Testing in Three Phases**

The National Bank of the Kyrgyz Republic is starting a pilot program for a digital version of the Kyrgyzstani som. The project will roll out in three stages:

1. First, it will connect with commercial banks for interbank transfers.
2. Next, it will integrate with the Central Treasury for government payments like salaries and social benefits.
3. Finally, it will test offline payments and use in areas with poor internet before launching nationwide.

The digital som is being developed with the help of a local blockchain company called Build Block TECH. The national rollout will only happen after all three testing phases are successfully completed. The central bank plans to decide by the end of 2026 whether to fully launch the CBDC. If approved, Kyrgyzstan would join countries like the Bahamas, Nigeria, and Jamaica that already have live central bank digital currencies.

President Japarov has also told the Ministry of Economy and Commerce to work closely with the central bank on laws related to virtual assets and help guide the CBDC pilot.

**Investing in Blockchain Education**

To support this digital transformation, Kyrgyzstan is also focusing on education. The president has asked the Ministry of Science, Higher Education and Innovation to set up national training programs in blockchain, artificial intelligence (AI), and digital finance.

Binance Academy will play a key role in this effort by partnering with 10 universities in Kyrgyzstan. These schools will offer localized courses using Binance’s blockchain curriculum. Binance will also fully localize its app for users in the country. This move builds on Binance’s previous education efforts in other Central Asian countries like Kazakhstan and Uzbekistan.

**Kyrgyzstan Joins Global Digital Currency Trend**

Kyrgyzstan’s move comes as many countries around the world are exploring or launching their own stablecoins and CBDCs. Over 100 nations are currently working on similar projects. In Asia, places like Hong Kong, China, and Singapore are running CBDC pilots. Kazakhstan and Uzbekistan have also started small-scale stablecoin projects with private firms.

The timing of Kyrgyzstan’s stablecoin launch matched former Binance CEO CZ’s return to public appearances after receiving a pardon from U.S. President Donald Trump over past legal issues. His visit to Bishkek highlights how important Binance remains in shaping crypto policy across Central Asia.

On that same day, global crypto markets saw a boost. Bitcoin jumped past $113,000 amid positive news from U.S.-China trade talks. Ether went up 2.6% to around $4,060, while BNB and Solana each rose by about 4.5%. Overall, the total crypto market value increased 1.8% to $3.72 trillion, according to CoinGecko.

**Key Takeaways:**
– Kyrgyzstan has launched KGST, a new stablecoin tied to its national currency.
– A three-phase pilot for a digital som CBDC is now underway.
– Education in blockchain and AI is a top priority with Binance’s support.
– Kyrgyzstan joins a growing number of countries testing digital currencies.
– The crypto market responded positively to these developments and global news.

This marks a big step forward in Kyrgyzstan’s journey toward a modern digital economy built on blockchain and fintech innovation.