Changpeng Zhao (CZ), founder of Binance, has proposed that Kyrgyzstan adopt Bitcoin (BTC) and Binance Coin (BNB) as the foundational assets for its National Crypto Reserve. This strategic move aims to diversify the country's assets and leverage the innovative capabilities of BNB within the Binance ecosystem, including DeFi, staking, and smart contracts. CZ’s vision is to position Kyrgyzstan as a regional digital finance hub in Central Asia.

Appointment to National Crypto Committee

Image Source: CZ

CZ was appointed to Kyrgyzstan’s National Crypto Committee in April 2025, tasked with advising on blockchain policy and Web3 strategy. His involvement follows a Memorandum of Understanding signed with Kyrgyzstan’s National Investment Agency (NIA), empowering him to guide the nation’s blockchain infrastructure and cryptocurrency regulations.

Binance Partnership and Crypto Payments Launch

In collaboration with the Kyrgyz government, Binance is set to launch Binance Pay, a crypto payment service that will facilitate nationwide cryptocurrency transactions. This partnership also includes blockchain education initiatives via Binance Academy to foster digital finance knowledge among government agencies and the public.

Kyrgyzstan’s Energy for Green Crypto Mining

President Sadyr Zhaparov highlighted Kyrgyzstan’s untapped hydroelectric power potential, with 30% of energy generated but only 10% utilized. The plan is to use this surplus for sustainable crypto mining, aiming to establish Kyrgyzstan as a green crypto hub and generate additional revenue streams.

Gold-Backed Stablecoin USDKG

Alongside the crypto reserve proposal, Kyrgyzstan is preparing to launch USDKG, a gold-backed stablecoin pegged to the US dollar. Backed initially by $500 million in gold reserves, USDKG aims to provide a stable, liquid digital asset for cross-border transactions and long-term value storage, further advancing Kyrgyzstan’s digital asset ecosystem.

This bold initiative by CZ and Kyrgyzstan’s government signals a pioneering step towards integrating cryptocurrencies at a sovereign level, potentially setting a precedent for other nations exploring national crypto reserves.