Kyrgyzstan Launches Pilot for Digital Som

The President of Kyrgyzstan, Sadyr Japarov, signed amendments to the law “On the National Bank,” enabling the launch of a pilot project for a prototype of the national digital currency.

According to the document, the digital som is recognized as legal tender within the country.

The National Bank holds the exclusive right to issue it. The asset circulates on a specialized platform, which is also operated by the regulator.

Additionally, the National Bank will establish payment rules for banks and other financial market participants. Furthermore, it will develop cryptographic protection for the digital som to ensure its security and prevent fraudulent transactions and operations.

In April, Binance founder Changpeng Zhao became an advisor to the Kyrgyz government on cryptocurrency and blockchain matters.