Central Asia’s blockchain leap — Kyrgyzstan invests $50M in state-backed token

Kyrgyzstan has launched over $50 million worth of its national stablecoin, USDKG, backed by gold reserves and pegged 1:1 to the U.S. dollar, according to the country’s financial regulator. The token is issued by a state-owned company controlled by the finance ministry.

Source Reuters

The initiative aims to facilitate cross-border payments and international trade, while positioning the country as a regional crypto hub. The Ministry of Finance said it plans to expand reserves to $500 million, eventually reaching $2 billion.

At the same time, Kyrgyz authorities halted all crypto mining operations to save electricity amid severe power shortages. The move reflects the government’s attempt to balance financial innovation with energy conservation, marking a pivotal moment for Central Asia’s digital economy.