After announcing an advisory relationship with Binance founder Changpeng Zhao (CZ), the Kyrgyz Republic has approved a law granting legal status to its proposed central bank digital currency (CBDC). The announcement is in line with the country’s strategy to embrace digital finance systems. In recent times, digital currencies have gained more traction globally as more nations seek to modernize their financial systems. These nations are turning to central bank digital currencies (CBDCs) to achieve this modernization and prepare for the future. Countries like Nigeria, China, and Sweden have already taken significant steps by launching or piloting their own national digital currencies. Now, the Kyrgyz Republic is joining the ranks with the introduction of its own CBDC—the digital som. Digital som becomes legal tender The Kyrgyz Republic has officially recognized its central bank digital currency (CBDC), the digital som, as legal tender. On March 20, 2025, the Jogorku Kenesh adopted the constitutional law, which President Sadyr Zhaparov then signed. The purpose of the law titled “On Amendments to the Constitutional Law of the Kyrgyz Republic ‘On the National Bank of the Kyrgyz Republic’” is to establish a clear legal and operational framework for the launch of the digital som. The law outlines that the digital som is the national currency in digital form and will be a recognized legal means of payment throughout the Kyrgyz Republic. The National Bank of the Kyrgyz Republic has exclusive rights to issue, regulate, and manage the digital currency, and will serve as the sole operator of the digital som platform. The law also includes additional provisions for the digital currency’s use and operation. For instance, the digital som can only be circulated through a specialized digital platform. The national bank will set up crypto-related security measures to ensure transaction security and prevent fraud. The bank will also clearly establish the rules of operation for commercial banks and regulate the financial institutions using the platform. These measures are part of the Kyrgyz Republic’s attempt to secure its financial systems while introducing innovative, digital payment solutions. Pilot program rollout expected in 2026 Following the legalization of the CBDC through a signed Constitutional Law, a pilot project for the prototype of the digital som is scheduled to launch in 2025. This trial phase is aimed at testing the technical and practical performance of the CBDC system. The pilot project will evaluate everything from user experience to platform security and interoperability with the existing traditional banking system of the Kyrgyz Republic. The Deputy Chairman of the National Bank, Mels Attokurov, emphasized security as one of the main features of the digital som’s design. The deputy chairman also referred to the digital currency as a step forward for the Kyrgyz Republic’s financial stability and modernization. The Kyrgyz Republic’s government also views the digital som as a step towards financial inclusion, especially in remote areas. The results of the pilot will inform the decision on a full rollout of the CBDC. Authorities are expected to make the final decision by the end of 2026, depending on the outcomes of the trial. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More
