PANews reported on May 30 that the Ministry of Finance of Kyrgyzstan announced the details of the gold-backed stablecoin USDKG, which will be strictly pegged to the country's physical gold reserves held in the treasury. Each USDKG corresponds to a specific amount of gold, and the reserves are regulated by the National Vault of the Kyrgyz Republic and are subject to regular audits to ensure transparency. The government stated that this initiative aims to enhance financial inclusion through blockchain technology, reduce transaction costs, and provide investors with a digital asset that is resistant to volatility.
USDKG is expected to go live on the blockchain platform in the coming months, and efforts are underway to integrate the system in collaboration with commercial banks and other institutions. The country hopes that this gold-backed model will serve as a template for digital economy innovation in the Central Asian region. Kyrgyzstan has been continuously promoting financial modernization reforms, ranking 58th in the world in gold reserves in 2024 (World Gold Council data).
According to previous news, Kyrgyzstan will launch the USDKG stablecoin backed by national gold reserves in Q3.