According to BlockBeats, Kyrgyzstan is set to introduce the USDKG stablecoin in the third quarter of 2025. This digital currency will be pegged to the U.S. dollar at a 1:1 ratio and backed by physical gold reserves. Initially, the gold reserves will amount to $300 million, with plans to expand to $2 billion.
The project has received authorization and support from the Kyrgyz Ministry of Finance and will be funded through gold purchases from the National Bank. USDKG will utilize an over-collateralization model to mitigate gold price fluctuations, allowing holders to redeem physical gold, cryptocurrencies, or fiat currency.
The initiative aims to enhance cross-border payment infrastructure in Central Asia and promote international trade. To ensure transparency, the project will undergo independent third-party audits in the future.