President Sadyr Japarov announced the launch of KGST, a stablecoin pegged to the Kyrgyz som, the country’s national currency. The token became available on Binance, the world’s largest cryptocurrency exchange. This became known after Japarov’s post on X on Wednesday, December 24. In his message, the president noted that the stablecoin KGST, pegged to the som, should simplify cross-border payments and strengthen Kyrgyzstan’s interaction with the cryptocurrency industry.
After the statement by the President of Kyrgyzstan, market attention shifted to Binance, where the stablecoin KGST pegged to the Kyrgyz som appeared. For the country, this is a rare case when the national currency receives a separate crypto instrument on a major international exchange. Changpeng Zhao commented on the launch on social media and said that other stablecoins issued with the participation of government agencies may also appear on the platform. The launch of KGST is being discussed in connection with the consultations that Zhao began providing to Kyrgyzstan back in the spring.
Judging by the results, this format of cooperation has moved from discussions to practical solutions. In September, there were reports about the preparation of a regulatory framework for a state cryptocurrency reserve. In addition to KGST, Kyrgyzstan also launched USDKG. This is a stablecoin pegged to the US dollar at a 1:1 ratio, backed by gold.
According to available information, the token was issued on the Tron network with an initial volume of about 50 million tokens. After that, representatives of the country hinted that in the future they are considering expanding the stablecoin’s presence to the Ethereum blockchain.
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