Yes, you heard it right. Kyrgyzstan. Not Switzerland, not Singapore, not Dubai. Kyrgyzstan. A country whose economy largely depends on remittances from migrant workers. A country whose GDP is roughly equal to the annual revenue of Starbucks. It is there that they plan to launch the stablecoin USDKG, backed not by fiat fluff, not by politicians’ promises, but by real gold worth 500 million dollars.
Wait a minute… gold?
Yes, that shiny, heavy metal that has been a measure of wealth for millennia before the Fed decided that printing money is normal. Gold! While the West floods the market with dollar liquidity, Kyrgyzstan says: “Wait a minute, what if we just… back our token with assets?”
How do you like that, Jerome Powell?
What is USDKG?
USDKG is a stablecoin pegged to the US dollar but backed by gold reserves. And not just 'lying around somewhere', but guaranteed by the Ministry of Finance of Kyrgyzstan. The launch is expected in the third quarter of 2025, with the primary goal being cross-border transfers. And now pay attention: 30% of Kyrgyzstan's GDP comes from remittances from abroad. This is not just a feature, it is an economic artery.
So, they are issuing a currency backed by real gold to replace intermediaries like Western Union and SWIFT. No 10% fees, no delays, no humiliations in banks. Just transferred, received, bought. Transparent, fast, and — scary to say — effective.
And what’s next?
The plan is this: first Central Asia, then Southeast Asia, and then — the Middle East. This is not just a regional project — it is a potential geo-economic tool. And here’s the cherry on top: in the long run, the gold reserve is expected to grow to $2 billion.
Sounds ambitious? Of course. But it sounds much more convincing than the attempts of many countries to launch CBDCs that nobody needs. Yes, yes, we’re looking at you, digital euro.
