Binance founder Changpeng Zhao recommends that Kyrgyzstan consider Bitcoin and BNB the first assets in building the National Crypto-Reserve.
His May 5 proposal, following an invitation to the country’s National Cryptocourse, told us a notable step in the country’s involvement with digital assets.
Zhao visited Kyrgyzstan at the invitation of President Sadyr Japarov. The two spent two days debating by Ishik Kul, where they explored the possibilities of blockchain technology in the country’s economic strategy.
President Japarov said:
“We presented the possibilities in the development of Kyrgyzstan’s digital economy and demonstrated the richness of our culture and the uniqueness of our national identity through a specially prepared cultural programme.”
The day before Zhao’s announcement, Kyrgyzstan’s national investment institution confirmed its new partnership with Binance.
The agreement aims to accelerate the adoption of crypto payments and promote digital finance education across the region.
One important outcome of the partnership is the deployment of vinance salaries that allow crypto-based transactions across Central Asia and allow for simplification of cross-border remittances with neighboring Eurasian Economic Union.
Kyrgyzstan gold-backed stub coins
In parallel development, Coindesk Kyrgyzstan reported that it was preparing to nail the gold-backed Stablecoin to the US dollar.
The new token, USDKG, is scheduled to be released in the third quarter of 2025. The assets will initially be supported by the Treasury Department with $500 million in money. However, the reserves are expected to grow to up to $2 billion.
Unlike gold tokens that track market prices, USDKG maintains a 1:1 value fixed in US dollars. This means that gold reserves serve as collateral and help stabilize the token while ensuring liquidity.
Meanwhile, authorities reportedly said the USDKG will be radicalised to manage potential gold price fluctuations.
Token holders can redeem it for physical gold, other cryptocurrencies, or fiat currency, suitable for cross-border transactions and long-term value storage