Kyrgyzstan Presents Details of the Gold-Backed Stablecoin USDKG

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According to PANews, the Ministry of Finance of Kyrgyzstan has announced the details of its gold-backed stablecoin, USDKG, which will be strictly tied to the national treasury's physical gold reserves. Each USDKG token corresponds to a specific amount of gold, with reserves supervised by the national deposit of the Republic of Kyrgyzstan and subject to regular audits to ensure transparency. The government seeks to enhance financial inclusion and reduce transaction costs through blockchain technology while providing investors with a stable digital asset.

USDKG is expected to launch on blockchain platforms in the coming months, with ongoing collaboration with commercial banks and other institutions to facilitate system integration. The country hopes that this gold-backed model will serve as a template for digital economic innovation in Central Asia. Kyrgyzstan has been actively pursuing financial modernization reforms in recent years, ranking 58th globally in gold reserves in 2024, according to the World Gold Council.

Previous reports indicated that Kyrgyzstan plans to introduce the USDKG stablecoin, backed by national gold reserves, in the third quarter.