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"Aigul [September 27, 2024] Central Bank Payment News (CBPN) published an article by Aigul Bakesarieva, Head of the Digital Som Project Group, National Bank of the Kyrgyz Republic on central bank digital currency (CBDC) developments at her central bank. On May 25, 2022 the Board of the National Bank launched the digital som concept based on a two-tier retail model. The digital som will be a unique digital token that will be stored in a special digital wallet, with transfers . occurring directly from one digital wallet to another. "

The National Bank of the Kyrgyz Republic (NBKR) has received proposals from twelve firms to develop and test a demo version of a digital som central bank digital currency (CBDC). The NBKR will select from Axellect, DCM, EMTECH, FIS, G+D Filia GmbH, Knox Networks, MONTRAN,Nahmii, Ltd, R3 Corda, SICPA/Nabatech, TCS Quartz, and Xiamen Strait Chain Technology. The selection criteria will focus on blockchain platform technology.

The Constitutional Law, State Structure, Judicial and Legal Issues, and Parliamentary Regulations Committee of the Kyrgyz Parliament has reportedly approved the draft law on the status of the digital som - in its first reading. It is designed to launch a pilot project for a prototype digital som and to establish its legal framework and status. Testing of the prototype is scheduled to begin in early 2025, and a final decision on the launch of the digital som is planned for the end of 2026.

The National Bank of the Kyrgyz Republic (NBKR) published a draft of proposed amendments to the country's central banking legislation to firm up the legal status of a digital som central bank digital currency (CBDC). These amendments affect eight key legislative acts, including the Civil Code, Budget Code, Code of Offenses, Tax Code, Law on Consumer Protection, Law on Payment Systems, and Law on Banks and Banking Activity. Public feedback, comments and suggestions must be submitted by September 7, 2024. https://www.nbkr.kg/newsout.jsp?item=31&lang=ENG&material=120922

Kyrgyz Republic President Sadyr Japarov signed the constitutional law that will enable the country's central bank to launch a digital som pilot project and create a legal basis for the central bank digital currency (CBDC). The law was adopted by the Parliament on March 20, 2025. The law defines the digital som as the national currency of the Kyrgyz Republic in digital form, which is legal tender in the country. The central bank is granted the exclusive right to issue the digital som, and will establish the procedure for its issue and circulation, as well as organize and ensure functioning of the digital som platform.

The Kyrgyz Ministry of Finance reportedly plans to launch a gold-backed stablecoin pegged 1:1 to the U.S. dollar in Q3 2025. The Gold Dollar (USDKG) will initially be backed by $500 million and be designed to facilitate seamless cross-border transfers. The Ministry aims to expand the gold reserves to as much as $2 billion, with independent audits planned to ensure trust and transparency in the collateral backing. All operational responsibilities-including gold custody, collateralization processes, and token issuance controls- will be handled by an independent Kyrgyz-registered private entity. https://www.usdkg.com/

Kyrgyzstan's central bank opens up crypto draft laws to public discussion The National Bank of the Kyrgyz Republic has completed the drafting of two bills designed to recognize and regulate the country's crypto sector. The first bill will require crypto exchanges to be licensed with the central bank, and contains reporting requirements aimed at reducing money laundering and terrorist financing risks. A separate bill introduces the concept of "virtual assets" into the Kyrgyz Republic's civil code, identifying crypto-assets as an object of civil rights, and mandates the taxation of services provided by cryptocurrency exchanges. https://www.nbkr.kg/newsout.jsp?item=31&lang=RUS&material=101398

The National Bank of the Kyrgyz Republic is developing a draft law that would regulate crypto-asset exchanges. The bank will accept proposals for the draft law until November 27, after which they will be published on the official register by December 4. https://www.nbkr.kg/newsout.jsp?item=31&lang=RUS&material=100565

The Kyrgyz Bank Interagency Working Group (IWG) on Regulatory Impact Analysis (RIA) wrapped up its work on the implementation of a potential digital som. Their comprehensive analysis delved into ten Kyrgyz Republic legislative acts related to the introduction of the central bank digital currency (CBDC), proposing crucial amendments in the process. During a meeting of the Steering Committee on Digital Som, the IWG demonstrated a demo version of the digital som on the (blockchain) platform of one of the CBDC platform providers of CBDC. Going forward, the project team will continue further work on research, analysis of proposals, as well as negotiations with CBDC platform. https://www.linkedin.com/posts/altynbek-kamchybek-uulu-0883b927a_digitalsom-regulatoryimpactanalysis-economicdevelopment-activity-7188456348999712768-PDZw/

The National Bank of the Kyrgyz Republic (NBKR) launched an ideation aimed at improving the prototype of its digital som central bank digital currency (CBDC). The goal is to ensure technological improvement of existing payment solutions and innovations, and at the testing stage to take into account the interests of citizens, business, government and the financial sector. Key areas of interest include system integration, security, user experience, and international interoperability.

[November 20, 2024] The National Bank of the Kyrgyz Republic (NBK) convened a meeting with the relevant ministries and agencies of the Kyrgyz Republic to discuss Phase II of the project for testing the prototype of the Digital Som platform in the context of state and social payments. During the meeting, the National Bank presented a draft architecture for the implementation of the "Balaga Suyunchu" (a one-time payment upon the birth of a child) project on the Digital Som platform. An agreement was reached to continue joint implementation of the project with technical specialists.