Binance Founder Advises Kyrgyzstan to Adopt Bitcoin and BNB for National Crypto Reserve
1min read Binance founder Changpeng Zhao has advised Kyrgyzstan to adopt Bitcoin and BNB as the first assets in building its National Crypto Reserve. This recommendation came after Zhao was invited to join the country’s National Crypto Council, signifying a significant move in Kyrgyzstan’s engagement with digital assets.
Zhao’s visit to Kyrgyzstan was at the invitation of President Sadyr Japarov. The two leaders engaged in discussions over two days by lake Issyk-Kul, focusing on the potential of blockchain technology in the country’s economic strategy. President Japarov highlighted Kyrgyzstan’s potential in developing a digital economy and showcased the country’s cultural richness and unique national identity through a specially prepared cultural program.
A day prior to Zhao’s announcement, Kyrgyzstan’s National Investment Agency confirmed a new partnership with Binance. This agreement aims to accelerate the adoption of crypto payments and promote digital finance education across the region. One of the key outcomes of this partnership will be the rollout of Binance Pay, which will enable crypto-based transactions across Central Asia and simplify cross-border remittances with neighboring countries in the Eurasian Economic Union.
In a parallel development, Kyrgyzstan is preparing to launch its gold-backed stablecoin pegged to the US dollar. The new token, usdkg, is scheduled for release in the third quarter of 2025. The asset will initially be backed by $500 million in gold from the Ministry of Finance, with the reserve expected to grow to as much as $2 billion. USDKG will maintain a fixed 1:1 value with the US dollar, unlike gold-pegged tokens that track market prices. This means the gold reserves will serve as collateral, helping stabilize the token while ensuring liquidity. Officials reportedly stated that USDKG will be overcollateralized to manage potential gold price fluctuations. Token holders will be able to redeem it for physical gold, other cryptocurrencies, or fiat currency, making it suitable for cross-border transactions and long-term value storage.
