Kyrgyzstan CBDC Plans Advance with New Digital Som Law

The launch of a central bank digital currency (CBDC) in Kyrgyzstan took a major step forward as the government approved legislation to back a new digital som. This move signals Kyrgyzstan’s growing interest in digital currency as part of its broader economic and technological modernization strategy.

Under the recently signed law, President Sadyr Zhaparov granted full legal status to the digital version of the som, Kyrgyzstan’s national currency. The legislation empowers the National Bank of the Kyrgyz Republic with exclusive authority to issue, manage, and operate the digital currency through a secure technological platform.

Central Bank Digital Currency Under Review Until 2026

While the new law marks a foundational milestone, officials clarified that the rollout of the digital som will be gradual. The central bank will pilot tests later this year to evaluate feasibility, efficiency, and system security. A final decision on a full-scale deployment is expected by the end of 2026.

To ensure safety and integrity, any future deployment must comply with encryption and security protocols. These safeguards aim to prevent illicit usage and maintain trust in the financial infrastructure.

Kyrgyzstan is now part of a growing list of over 100 countries assessing or implementing CBDCs. However, only a few—such as Bahamas, Nigeria, Jamaica, and Zimbabwe—have fully launched national digital currencies so far.

Digital Currency Strategy Driven by Long-Term Vision

Kyrgyzstan’s push toward a digital economy is not occurring in isolation. A recent collaboration with Changpeng Zhao, former CEO of Binance, highlights the country’s desire to position itself as a hub for blockchain development. Zhao has agreed to advise the government on crypto governance and blockchain regulation.

President Zhaparov indicated that these strategic alignments aim to enhance Kyrgyzstan’s financial resilience while unlocking digital opportunities for its citizens and businesses.

Energy availability is another factor supporting Kyrgyzstan’s CBDC ambitions. The country has extensive hydroelectric resources—over 30% of its power is already derived from renewable hydro sources. The International Energy Agency has also flagged untapped potential in this domain. Such capacity offers an ideal setting for operating blockchain systems, which are often energy-intensive.

Balancing Innovation and Citizen Protection

Despite the optimism around Kyrgyzstan’s push for a CBDC, the concept remains divisive among privacy advocates. Critics argue that digital currencies issued and controlled by central banks could enable mass surveillance and limit financial autonomy.

In response, Kyrgyz officials have pledged to prioritize transparency, innovation, and economic benefit while protecting individual and corporate privacy. Authorities see the digital som initiative as a long-term tool to expand financial inclusivity and enhance the country’s digital infrastructure.

With legal clarity now established and testing phases on the horizon, the journey toward Kyrgyzstan’s sovereign digital currency is well underway. The next two years will determine whether the digital som moves from concept to a central part of the nation’s financial system.

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