Kyrgyzstan’s finance ministry registers the USDKG stablecoin

Financial authorities in Kyrgyzstan have registered a new stablecoin, USDKG, which enjoys the full support of the state in the former Soviet ￰0￱ Central Asian nation is already home to the largest non-dollar stablecoin on the market, the Russian ruble-denominated ￰1￱ the latest fiat-linked cryptocurrency to be issued there will be tied to the Greenback and underpinned with stockpiles of precious ￰2￱ to be issued in Kyrgyzstan within days Kyrgyzstan’s Ministry of Finance announced the upcoming launch of USDKG, touted as the world’s first state-sponsored stablecoin that’s fully backed by physical ￰3￱ said the new crypto has been officially registered by the State Service for Regulation and Supervision of Financial Markets, the watchdog overseeing the non-bank segment of the country’s financial ￰4￱ digital currency is pegged to the ￰5￱ at a 1:1 ratio and supported by gold reserves controlled by the Kyrgyz state, Trend reported on Thursday, quoting the Treasury in ￰6￱ Azerbaijani news agency, which covers current events in the Caucasus and Central Asia, further detailed: “The initial issue and listing on centralized and decentralized exchanges are expected in the coming days, with a separate notice to provide details on volume, mechanism, and timing.” Once introduced, USDKG will serve as a financial instrument combining the time-tested reliability of the precious metal with the transparency of blockchain systems, the finance ministry ￰7￱ stablecoin project is part of a pilot program implemented to develop Kyrgyzstan’s digital economy and strengthen its financial ￰8￱ plan to launch the asset-backed currency, also called “Gold Dollar,” was unveiled in May, when Kyrgyz authorities said it will appear in the third quarter of ￰9￱ the time, an advisor to the project revealed it would start with $500 million worth of gold in store, with intentions to ultimately increase the reserves to $2 billion, as reported by ￰10￱ this week’s announcement, the Ministry of Finance noted the growing international interest in USDKG and shared its expectations that the coin will bolster Kyrgyzstan’s ambition to become a hub for financial innovation, attracting ￰11￱ department clarified that USDKG is not related to the digital som (KGST).

The central bank digital currency ( CBDC ) project is still under discussion at the National Council for the Development of Virtual Assets and Blockchain ￰12￱ becomes a stablecoin hotspot Officials also pointed out that, unlike other stablecoins that are linked to either gold or fiat money, USDKG relies on ￰13￱ elaborated: “It’s striving for the dollar’s stability, while being underpinned by the tangible asset, all endorsed by the government.” Kyrgyz authorities believe the state-backed crypto will facilitate ￰14￱ people in the country rely on the money sent by family members working ￰15￱ hope it will boost trade as ￰16￱ Kyrgyzstan-based stablecoin, that’s already being used for similar purposes, is the ruble-pegged ￰17￱ by a Russian company and backed by deposits in a Russian bank, the cryptocurrency is actually issued by a Kyrgyz-registered ￰18￱ coin is widely employed in cross-border transactions, contributing to Russia’s ranking first in the latest European crypto adoption report by ￰19￱ a market cap of around $500 million, it already accounts for around half of the total capitalization of all non-dollar ￰20￱ its suspected use in Russian evasion of international financial restrictions imposed over the war in Ukraine, organizations linked to A7A5 have been targeted in Western ￰21￱ crypto, which Russia officially recognized as a digital financial asset, has created headaches for Bishkek, as Kyrgyz banks and crypto platforms were also among the sanctioned ￰22￱ smartest crypto minds already read our ￰23￱ in?

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