Binance Co-Founder Advises Kyrgyzstan to Include Bitcoin and BNB in National Crypto Reserves

Binance co-founder Changpeng “CZ” Zhao has proposed Bitcoin and BNB as the first digital assets to form Kyrgyzstan’s national crypto reserves. On May 5, Zhao shared on X that he advised Kyrgyzstan to start with Bitcoin (BTC) and BNB (BNB) when building its national crypto reserve. The proposal follows Zhao’s earlier announcement that he had begun advising Kyrgyzstan’s National Investment Agency (NIA) on blockchain and crypto-related matters.

Zhao confirmed he’s been officially and unofficially advising governments on crypto frameworks and blockchain solutions. The former Binance CEO said that he finds the work extremely meaningful.

A month after CZ announced his role in advising Kyrgyzstan, Binance announced a partnership with the country to launch a crypto payments service. On May 4, Binance signed a memorandum of understanding (MOU) with the NIA to introduce Binance Pay to the country, enabling crypto transactions. The partnership also aims to boost crypto education in the country, with Binance Academy set to work with government agencies to develop blockchain-focused educational programs.

Kyrgyzstan has been making moves to become a digital asset-friendly jurisdiction. On April 17, Kyrgyzstan President Sadyr Zhaparov signed a law authorizing a central bank digital currency pilot project while giving the national currency's digital form a legal tender status.

The country also reportedly plans to launch a gold-backed stablecoin. The gold-backed stablecoin will be pegged to the United States dollar and called the Gold Dollar (USDKG). This will be backed by $500 million in gold provided by the country's Ministry of Finance.

Zhao’s proposal to include Bitcoin and BNB in Kyrgyzstan’s national reserves is a significant step towards integrating digital assets into the country’s financial system. This move aligns with the global trend of governments exploring the potential of cryptocurrencies and blockchain technology.

By advising Kyrgyzstan on blockchain and crypto-related matters, Zhao is playing a pivotal role in shaping the country’s digital asset landscape. His involvement underscores the growing interest in cryptocurrencies among governments worldwide, as they seek to leverage the technology for economic growth and innovation.

The partnership between Binance and Kyrgyzstan to launch a crypto payments service further solidifies the country’s commitment to becoming a digital asset-friendly jurisdiction. The introduction of Binance Pay will enable seamless crypto transactions and promote financial inclusion. Additionally, the collaboration with Binance Academy to develop blockchain-focused educational programs will enhance the country’s expertise in the field.

Kyrgyzstan’s initiative to authorize a central bank digital currency pilot project and give the national currency's digital form legal tender status demonstrates its proactive approach to embracing digital currencies. This move is expected to foster innovation and efficiency in the country’s financial sector.

The proposed gold-backed stablecoin, pegged to the United States dollar, represents another innovative step by Kyrgyzstan. By backing the stablecoin with $500 million in gold, the country aims to provide a stable and reliable digital asset, further enhancing its digital asset ecosystem.