Kyrgyzstan Strengthens Digital Finance Cooperation with the US, Moving Towards a Web3 Regional Hub

The landlocked Central Asian country of Kyrgyzstan is repositioning itself as a hub of the Eurasian digital economy through a series of digital financial innovations.

Farkhat Imminov, head of the Secretariat of the National Committee for the Development of Virtual Assets and Blockchain Technology under the President of Kyrgyzstan, recently met with US Ambassador to Kyrgyzstan Leslie Vijeri to discuss strengthening cooperation in the fields of virtual assets and digital finance.

This meeting marks international recognition of Kyrgyzstan's ambitions in the digital finance sector. Imminov stated at the meeting that Kyrgyzstan's virtual asset market has entered a stage of institutionalized growth, with transaction volume expected to reach approximately 860 billion soms (approximately US$10 billion) by the first half of 2025.

01 Systematic Layout of the National Digital Finance Strategy

In recent years, Kyrgyzstan has systematically promoted the construction of digital financial infrastructure. The 2022 Virtual Asset Law established a clear legal framework for crypto activities, providing a legal foundation for the industry's development.

Subsequently, Kyrgyzstan established the National Commission for the Development of Virtual Assets and Blockchain Technology, directly under the President, prioritizing the development of blockchain and digital finance.

The country adopted a dual-track digital financial system: on the one hand, it launched the state-backed stablecoin KGST; on the other hand, it promoted the research and development of a central bank digital currency (CBDC), the "Digital Som."

On December 24, 2025, Kyrgyzstan's national stablecoin KGST was officially listed on Binance, the world's largest cryptocurrency exchange, becoming the first national stablecoin from a CIS country to be listed on a global cryptocurrency exchange.

KGST is pegged 1:1 to the Kyrgyz Som and operates as a BEP-20 token on the BNB blockchain, with a total supply of approximately 446 million tokens. This move marks a substantial step forward in Kyrgyzstan's digital financial strategy.

02 Geopolitical and Economic Implications of US-Kyrgyzstan Cooperation

This US-Kyrgyzstan meeting was not an isolated event, but rather built upon the consensus reached during the November 2025 meeting between Kyrgyz President Sadyr Japarov and US President Donald Trump. Both sides have identified the digital economy, artificial intelligence, and information technology as key areas of cooperation.

US Ambassador to Kyrgyzstan, Leslie Vijeri, acknowledged the rapid development of Kyrgyzstan's virtual asset sector, noting that its market growth rate has surpassed that of other Central Asian countries, and stated that there is still significant room for expansion in this area.

The US expressed its willingness to cooperate with Kyrgyzstan, hoping to exchange experiences on virtual asset development and regulation among relevant US government departments and enterprises, and to organize professional projects and training.

This cooperation will help Kyrgyzstan's financial system better integrate into the global network, reducing external concerns about its "compliance." For the US, this also presents an opportunity to participate in the construction of digital financial infrastructure in Central Asia.

03 Ecosystem Building Through Diverse Cooperation Paths

Kyrgyzstan's digital finance strategy exhibits characteristics of multi-layered international cooperation. In addition to its cooperation with the US government, Kyrgyzstan has also established partnerships with several internationally renowned companies.

Most notably, in April 2025, the Kyrgyz government announced that the National Investment Agency, directly under the President, had signed a strategic memorandum of understanding with Binance founder Changpeng Zhao, officially appointing CZ as the official advisor for national blockchain development, cryptocurrency regulation, and Web3 innovation.

Binance signed an agreement with the Kyrgyz Republic to support its transition to a digital economy, introducing Binance Pay for secure encrypted payments, and also including a national blockchain education program and infrastructure development.

Changpeng Zhao has recommended that Kyrgyzstan include BNB and BTC as the first digital currencies in its national cryptocurrency reserves. This diversified cooperation path provides Kyrgyzstan with more resources and possibilities for digital financial development.

04 Regional Context and Competition in Digital Financial Development

Kyrgyzstan's digital financial ambitions need to be understood within the context of competition in Central Asia. Several Central Asian countries are actively developing digital assets, creating a competitive landscape.

Members of the Kazakh parliament have called on the government to establish a national crypto bank as a centralized platform for the custody and trading of legitimate digital assets. Kazakhstan's President Kassym-Jomart Tokayev has stated his ambition to make his country a global leader in digital assets and blockchain technology.

Uzbekistan has legalized cryptocurrency trading and established a national regulatory mechanism to manage the industry. These countries all recognize the importance of digital financial technology for future economic development and regional competitiveness.

Against this backdrop of regional competition, Kyrgyzstan is attempting to establish itself as a leader in Central Asia's digital finance sector through rapid expansion and international cooperation. Its market growth rate has surpassed that of other Central Asian countries, and its transaction volume of 860 billion soms demonstrates its initial success.

05 From Cross-Border Payments to a Grand Blueprint for a Digital Economy Hub

Kyrgyzstan's drive for digital finance development stems from its economic development needs. As a landlocked country, Kyrgyzstan is highly dependent on cross-border trade and remittance flows.

Remittances account for nearly 30% of Kyrgyzstan's GDP, creating a huge demand for efficient digital financial instruments. The traditional cross-border payment system is inefficient and costly, hindering economic and trade development.

Kyrgyzstan is building the "Digital Som" system, aiming to create a self-reliant and controllable financial infrastructure that is naturally adapted to future international digital payment networks.

Beyond the financial sector, Kyrgyzstan is also comprehensively developing its digital economy. According to Kyrgyz Prime Minister Kaseymaliyev, the country's e-commerce market is projected to reach $525 million by 2025, a 15% year-on-year increase, accounting for 13% of retail trade, higher than the global average of 5%.

The government is developing an e-commerce development plan up to 2030, constructing e-commerce parks, and introducing special tax policies, levying a 2% tax on turnover while exempting from VAT, income tax, and sales tax.

With deepening cooperation between the US and Kyrgyzstan, Kyrgyzstan's digital financial infrastructure will be further improved. Regulatory experience and training provided by the US will help Kyrgyzstan establish a digital financial regulatory system that meets international standards, enhancing international investor confidence.

From a broader perspective, Kyrgyzstan's exploration provides a new paradigm for Global South countries to participate in digital financial competition.

Digital financial technology is being incorporated into the overall planning of national modernization and geostrategy. This transformation of currency, sovereignty, and technology has only just begun.