Kyrgyzstan has taken a major step toward embracing digital currency, as President Sadyr Zhaparov signed a constitutional law authorizing a central bank digital currency (CBDC) pilot project.
The initiative formally grants legal tender status to the “digital som,” a virtual version of the country’s national currency.
Announced by the presidential office on 17 April 2025, the law gives the National Bank of the Kyrgyz Republic full authority over the issuance, circulation, and regulatory framework of the digital som.
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Kyrgyzstan’s Central Bank To Oversee Digital Som Infrastructure
The central bank will also oversee the platform on which the digital currency will operate. While testing is expected to begin this year, a final decision on full implementation is not anticipated until late 2026, according to a report from Trend News Agency.
If fully launched, the digital som would require a robust system of cryptographic protections to guard against fraud and unauthorized transactions.
The pilot comes amid growing global interest in CBDCs, though critics continue to voice concerns about financial surveillance and government overreach.
Kyrgyzstan’s parliament, the Jogorku Kenesh, approved the constitutional amendment on March 18, paving the way for Zhaparov’s endorsement.
I’ve been busy these past few days with the Central Asia–EU Summit, but today I finally had the chance to read through the comments. I’m really glad to see such lively interest in Kyrgyzstan!
Some people mentioned in the comments that someone allegedly promised a building for… https://t.co/Dd6aK2lLiW— Sadyr Zhaparov (@sadyrzhaparovkg) April 7, 2025
The country now joins over 115 nations exploring CBDCs, though only four — the Bahamas, Nigeria, Jamaica, and Zimbabwe — have officially rolled theirs out, according to data from cbdctracker.org. Most projects remain in the research or testing phase.
In a related development, former Binance CEO Changpeng “CZ” Zhao signed a memorandum of understanding with Kyrgyzstan’s foreign investment agency earlier this month. He agreed to advise the country on blockchain and crypto regulation.
President Zhaparov noted that these efforts aim to enhance economic growth, safeguard digital assets, and open new avenues for innovation.
Kyrgyzstan’s renewable energy infrastructure may further support its ambitions in the digital finance space.
Over 30% of the country’s energy comes from hydroelectric sources. Yet only 10% of its hydropower capacity has been utilized. This makes it an attractive location for crypto mining and blockchain development.
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Belarus Targets 2026 Digital Ruble Launch, Eyes Cross-Border Integration With Russia
In a related development, Belarus is preparing to roll out its central bank digital currency (CBDC), the digital ruble. The roll out is expected by the second half of 2026, with full circulation to businesses expected that year and broader public adoption in 2027.
According to National Bank chief Roman Golovchenko, the project is a top priority, with a strong focus on transaction traceability and fund security.
Golovchenko outlined three major tasks. Defining the platform architecture, developing domestic software, and establishing a regulatory framework.
The digital ruble is also seen as a potential tool for cross-border payments, with Belarus working closely with Russia, which is pursuing a similar CBDC strategy. Russia, however, recently delayed its full rollout.
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Key Takeaways
- Kyrgyzstan has officially launched a CBDC pilot, giving legal tender status to the digital som.
- Full implementation won’t be decided until 2026, with the central bank overseeing issuance and regulation.
- The country’s hydroelectric power and growing blockchain ties position it well for digital finance innovation.
The post Kyrgyzstan Approves CBDC Pilot, Grants Digital Som Legal Tender Status appeared first on 99Bitcoins.
