The Government of Kyrgyzstan has officially supported the launch of the USDKG stablecoin, which will be backed by gold and pegged to the US dollar. The project, part of the national Web3 strategy, aims to make Kyrgyzstan a leading crypto hub in Central Asia.
This is reported by Business • Media
USDKG’s Backing Mechanism and the Government’s Role
According to project advisor William Campbell, USDKG differs from most stablecoins in that each token unit is backed by real gold reserves stored in vaults and regularly audited. The audit of the gold reserves is planned to be conducted every six months by one of the “Big Four” firms.
“We do not want people to speculate. We aim for the stability of the dollar, but the trust of gold. This is not digital gold for investors, but a means for everyday transactions,” Campbell explained.
Campbell emphasized that the government does not take direct control of the project but provides institutional support and, if necessary, ensures the gold reserves. The uniqueness of the initiative lies in its transparency and real confirmation of backing, as well as in the partnership between the state and the private sector.
Crypto Market Development Strategy and International Cooperation
Kyrgyzstan seeks to follow the example of El Salvador, but focuses not on issuing a central bank digital currency, but on creating joint products with private companies and developing DeFi innovations. USDKG is positioned as a competitor to other stablecoins due to its transparency, trust, and developed financial products, including profitability and lending models.
The USDKG project has already become an important part of the country’s image, and its launch is associated with national pride.
“This is a matter of national pride. When the people have pride, projects work better,” Campbell added.
Currently, there are officially over 140 crypto companies registered in the country, with tax incentives and clear legal regulations creating a favorable climate for investors.
In April 2025, the President of Kyrgyzstan, Sadyr Japarov, announced a strategic partnership with Binance exchange founder Changpeng Zhao. Subsequently, in May, Binance signed a partnership agreement with the National Investment Agency under the President, highlighting the country’s commitment to developing a modern digital economy.