Kyrgyzstan’s Ministry of Finance releases details of gold-backed stablecoin USDKG to promote digital financial reform

The Ministry of Finance of Kyrgyzstan recently announced the implementation details of its gold-backed stablecoin project, USDKG. According to the announcement, USDKG will be strictly anchored to the physical gold reserves in the national treasury. Each token corresponds to a certain amount of gold, which will be supervised by the National Vault of the Kyrgyz Republic and subject to regular third-party audits to ensure the transparency and traceability of the reserves.

The core goals of the project include improving domestic financial inclusion, reducing transaction costs, and providing users with anti-volatility digital asset options. The Ministry of Finance stated that the issuance of USDKG will use blockchain technology to digitize assets, enhance cross-border payment efficiency and the stability of local financial infrastructure. The Kyrgyz government believes that this model is expected to provide a reference for digital economic innovation for other countries in Central Asia.

USDKG is expected to be launched on the blockchain platform in the next few months, and is currently working with a number of commercial banks and financial technology companies to achieve system integration and payment channel access. The Ministry of Finance emphasized that the currency will be mainly used for payment settlement, asset storage and gold-related investment scenarios in the future.

According to data released by the World Gold Council, as of 2024, Kyrgyzstan's official gold reserves rank 58th in the world. Although the volume is relatively limited, the government hopes to improve its resource allocation efficiency and trust foundation in the financial market by linking digital tokens to gold.

It has been revealed that USDKG will be officially launched in the third quarter of 2025, becoming the first stablecoin in Central Asia backed by national gold reserves and running on the blockchain. The plan is seen as part of Kyrgyzstan's long-term financial modernization reform roadmap.