The Ministry of Finance of Kyrgyzstan announced the launch of USDKG stablecoin in the third quarter of 2025. The digital asset will be tied to the US dollar in a ratio of 1: 1 and is fully provided with gold reserves under the control of the Ministry of Finance.
At the same time, the Ministry of Finance will be responsible for providing gold security and air control, and USDKG will be organized through the state crypto -country. For the technical part of the project, including development and support, will be responsible for private companies and independent consultants.
The department clarified that the project is pursuing the purpose of simplifying internal and cross -border money transfers, which is especially important for Kyrgyzstan, where about 30% of GDP is formed due to incoming translations of labor migrants. If necessary, the USDKG stabilcoins will be able to exchange the asset for gold, cryptocurrency or fiat money.
The Ministry of Finance suggests that the launch of USDKG can contribute to economic growth and strengthening the country’s financial system. However, there are risks, such as the volatility of gold prices, political and regulatory difficulties, as well as competition with popular dollar USDT and USDC stabilcoins, which together occupy more than 90% of the Kyrgyz cryptocurrency transfers.
Earlier, the President of Kyrgyzstan Sadyr Zhaparov signed amendments to the Law on the National Bank, opening the financial regulator to the launch of digital catfish, the country’s national digital currency.
Source: Bits
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