Binance’s CZ Appointed as Blockchain Advisor for Kyrgyzstan: From Gold-Backed Stablecoins to Agricultural Chains, Competing to Establish a Central Asian Web3 Innovation Hub

Kyrgyz Republic Signs Strategic Cooperation Memorandum with Binance Founder CZ

Located in Central Asia, the Kyrgyz Republic has signed a Strategic Cooperation Memorandum (MoU) with Binance founder Zhao Changpeng (CZ), officially appointing CZ as the national blockchain policy and Web3 strategic advisor. Kyrgyzstan aims not only to cultivate talent, introduce technology, and improve regulations but also to become the digital innovation center of Central Asia.

CZ Becomes National Blockchain Advisor to Promote Policies and Talent Development

According to a tweet from Kyrgyz President Sadyr Zhaparov, the National Investment Agency signed the MoU with CZ at the beginning of April, simultaneously appointing him as the national blockchain strategic advisor. The cooperation includes:

• Assistance in formulating policies and regulations for blockchain and crypto assets
• Technical support for blockchain infrastructure
• Talent cultivation and educational training
• Promotion of DeFi and Web3 innovations

Previously Launched Gold-Backed Stablecoin USDKG to Combat Inflation and Facilitate Cross-Border Payments

The Kyrgyz government previously launched a stablecoin called “Gold Dollar” (USDKG), backed by government-held gold reserves, with an initial reserve value of $500 million, planned to increase to $2 billion within two years. The issuance mechanism of USDKG follows the principle of “issuing only with increased reserves” and includes a publicly transparent reserve proof system to combat inflation and enhance user trust; furthermore, USDKG can also be used for low-cost cross-border payments.

Promoting the “Value Chain Agricultural Finance” Program to Improve the Quality and Yield of Local Agricultural Products

Kyrgyzstan has also launched the “Value Chain Agricultural Finance” program to enhance the quality and yield of local agricultural products. This program covers:

• Fruits
• Cereals
• Vegetables
• Sugar
• Potatoes

It provides technical assistance, training, and financial support to promote the development of agricultural producers and processors.

Potential to Become a Central Asian Venture Capital Hotspot and Form a Web3 Cooperation Circle with Neighboring Countries

1. Become a hotspot for blockchain venture capital: National-level support and CZ’s advisory role are expected to attract new entrepreneurs and venture capital from Asia and Europe.
2. Form a “Blockchain Cooperation Circle” with neighboring Central Asian countries: This could promote connectivity with Kazakhstan, Uzbekistan, and others.
3. Policy and regulation testing ground: Kyrgyzstan may become the preferred location for crypto operators to test new sandbox models.
4. Focus of international regulatory bodies: The transparency of blockchain policies may also attract the attention of institutions like FATF and IMF regarding financial stability and anti-money laundering measures.

Risk Warning

Investing in cryptocurrencies carries high risks, and prices may be highly volatile, resulting in the loss of your entire principal. Please assess the risks carefully.