The Kyrgyz Republic is set to launch the gold-backed stablecoin USDKG pegged to the US dollar in the third quarter of 2025. This initiative represents a significant step towards modernizing the country's financial infrastructure.
Launch of the Stablecoin
The Kyrgyz Central Bank plans to issue a stablecoin called the 'Golden Dollar' (USDKG) which will be backed by $500 million in gold reserves. These reserves will be under the custody of the Ministry of Finance.
Advantages of the Gold-Backed Stablecoin
According to officials from the Ministry of Finance, USDKG will combine the stability of gold with the usability of digital currencies. 'It will be a secure tool for both domestic and international payments,' said a representative from the ministry.
Future Prospects
With the launch of USDKG, Kyrgyzstan aims to attract foreign investors and provide a hedge against inflation. The state also plans to increase the reserves to $2 billion depending on the success of the currency.
The launch of a gold-backed stablecoin in Kyrgyzstan reflects the growing interest in asset-backed currencies. This could provide new momentum for the development of digital finance in the country and region.
