Kyrgyzstan has launched a national stablecoin and a central bank digital currency in a landmark partnership with the global cryptocurrency exchange Binance, a significant move by the Central Asian nation to position itself as a regional crypto leader.
According to Reuters, President Sadyr Japarov announced the initiative on Saturday, cementing the country’s deepening relationship with the crypto giant and its recently pardoned founder, Changpeng Zhao.
The new national stablecoin has been launched on the BNB Chain, and a digital version of Kyrgyzstan’s currency, the som, is now ready for use in government payments, according to a post on the social media platform X by Changpeng Zhao.
Zhao, who was appointed as an adviser on digital assets to the president of Kyrgyzstan in May, also confirmed that a national cryptocurrency reserve has been established, which will include Binance’s own BNB token.
A strategic move in a complex geopolitical landscape
The move is a bold step for the mountainous former Soviet republic of around 7 million people, which has traditionally been dependent on Russia.
In recent years, the country has actively sought to become a leader in the cryptocurrency space in Central Asia.
However, that ambition has come with risks.
Another Kyrgyzstan-based stablecoin, A5A7, which is backed by the Russian rouble, has been placed under sanctions by Western governments who allege it is being used to facilitate the avoidance of sanctions on Russia over the war in Ukraine.
The ‘CZ’ factor and a timely presidential pardon
The partnership is being driven by one of the most famous and recently controversial figures in the crypto world.
Zhao’s role as a presidential adviser has given Binance a direct line to the highest levels of the Kyrgyz government.
The launch of the new stablecoin is also notable for its timing, coming just one day after US President Donald Trump issued a full pardon to Zhao, who had previously been convicted of money laundering-related offenses in the United States.
The ambitious crypto initiative comes as President Japarov, who came to power in 2020, has clamped down on domestic dissent and prepares for a snap parliamentary election on November 30, where his allies are aiming to expand their dominance.
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