Binance Co-Founder Proposes Bitcoin, BNB for Kyrgyzstan's National Crypto Reserves

Binance co-founder Changpeng “CZ” Zhao has proposed that Kyrgyzstan establish its national crypto reserves with Bitcoin and Binance Coin (BNB). On May 5, Zhao shared his recommendation on X (formerly Twitter), suggesting that these two cryptocurrencies could serve as a solid foundation for the country’s reserve strategy. This proposal comes as part of Zhao’s advisory role with Kyrgyzstan’s National Investment Agency (NIA), where he has been providing guidance on crypto and blockchain-related frameworks. Zhao has indicated that he has been offering similar advice to various governments around the world, both officially and unofficially, and finds the work to be extremely meaningful.

A day before Zhao’s tweet, on May 4, Binance signed a memorandum of understanding (MOU) with the NIA to launch Binance Pay in Kyrgyzstan. This cryptocurrency payment solution will enable customers in the country to conduct payments using digital assets, further expanding Binance’s presence in Central Asia. The partnership also includes an educational component, with Binance Academy collaborating with Kyrgyz government agencies to introduce blockchain-based programs. The goal is to reskill citizens and build a technologically savvy workforce, aligning with the country’s broader digital finance ambitions.

Kyrgyzstan has been actively pursuing initiatives to become a crypto-friendly nation. On April 17, President Sadyr Zhaparov signed into law a central bank digital currency (CBDC) pilot program. This law also grants legal tender status to the digital Kyrgyz som, marking a significant step in the country’s digital finance journey. Additionally, Kyrgyzstan is reportedly developing a U.S. dollar-pegged gold-backed stablecoin, temporarily named the Gold Dollar (USDKG). This stablecoin will be collateralized by $500 million in gold by the country’s Ministry of Finance, further integrating traditional finance with blockchain technology.

Zhao’s proposal for Kyrgyzstan to adopt Bitcoin and BNB as part of its national crypto reserves reflects a growing trend among nations to explore digital assets as a means of diversifying their financial reserves. By leveraging the expertise of Binance and its co-founder, Kyrgyzstan aims to position itself at the forefront of digital finance innovation. The launch of Binance Pay and the educational initiatives underscore the country’s commitment to fostering a technologically advanced economy. The development of a gold-backed stablecoin adds another layer to Kyrgyzstan’s digital finance strategy, demonstrating its efforts to bridge the gap between traditional and modern financial systems.