Kyrgyzstan Launches First Government-Backed Stablecoin USDKG

Kyrgyzstan has officially entered the digital currency arena with the launch of its first national stablecoin, USDKG.

Backed by gold and pegged to the US dollar at a 1:1 ratio, the coin is designed for global trading, The Caspian Post reports via Kyrgyz media.

The issuance cost the national budget 438,480.75 soms and was registered last week with the Financial Market Regulation and Supervision Service. The stablecoin is issued by Virtual Asset Issuer company, wholly owned by the Ministry of Finance, making USDKG the country’s first government-backed digital asset.

Binance founder Changpeng Zhao was among the first to highlight Kyrgyzstan’s milestone in late October. The stablecoin’s development follows directives from President Sadyr Japarov, who instructed the government to launch KGST and begin testing a digital som. The initiative was discussed during a National Council meeting on virtual assets and blockchain technologies, attended by both the president and Zhao.