Kyrgyzstan has approved the development of a central bank digital currency (CBDC) called the “digital som.” The National Bank of the Kyrgyz Republic will have sole authority to issue and regulate it. The decision on whether to implement the digital som is expected by late 2026, with testing to begin this year. Kyrgyzstan joins over 100 countries exploring CBDCs, with only a few having officially launched them. President Zhaparov signed a cooperation agreement with former Binance CEO Changpeng Zhao to advise on blockchain regulation and crypto-sector growth. Kyrgyzstan’s abundant hydroelectric capacity makes it appealing for crypto-related infrastructure. Despite concerns about surveillance and centralized control, Kyrgyz officials prioritize financial stability, innovation, and long-term benefits for businesses and citizens.

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