Kyrgyzstan is considering the national stablecoin KGST as an element of the country's future financial infrastructure. This approach combines the advantages of blockchain—speed, low cost, and transparency of payments—with the goal of preserving the role of the national currency in the economy. Kirill Khomyakov, Regional Head of Binance for Central and Eastern Europe, Central Asia, and Africa, discussed this in an exclusive interview with Economist.kg.
According to Kirill Khomyakov, national stablecoins have long since moved beyond being an auxiliary tool for cryptocurrency transactions. While their primary role was previously limited to "bridge" between traditional finance and digital assets, today they are increasingly being used for domestic and cross-border payments.
"Stablecoins denominated in the national currency solve several problems at once. The same amount as the issued stablecoins is held in national currency in deposits at local banks—money doesn't flow out of the country, and GDP doesn't decrease, but rather increases." "At the same time, residents and businesses receive all the benefits of blockchain—fast, cheap, and transparent payments," the source noted.
Kirill Khomyakov emphasized that, unlike dollar-denominated stablecoins, national digital assets allow the use of blockchain without risking the stability of the national currency.
How long will it take for the Kyrgyz Republic's financial infrastructure to adapt to the KGST?
According to a Binance representative, the adaptation timeline will be tight. Basic tools for stablecoin transactions already exist, and the next step will be integration with banking and payment infrastructure.
"Our goal is to create a banking framework that will make it fast, cheap, and seamless. We are working on integration with payment systems that will allow funds to be transferred from banks in national currency and automatically converted into stablecoins in just a few clicks," Khomyakov explained.
He added that similar solutions are being developed for legal entities, and the launch of key infrastructure elements is expected in the coming months.
— Some believe the government supports Binance in Kyrgyzstan because of the exchange's transparent operating principles. Are there other reasons for such cooperation?
Reducing cooperation to transparency issues alone would be an oversimplification, Khomyakov believes. It's a win-win model.
"This is a case where the project is beneficial to everyone. Users gain legal and regulated access to the global financial system. The government benefits from new businesses, investments, jobs, and taxes," he noted.
According to Binance's regional head, such initiatives create conditions for an influx of international companies and increase the country's competitiveness in the region.
— In what format do Binance and the National Council on Virtual Assets and Blockchain interact today?
As Kirill Khomyakov noted, the exchange acts as an expert partner. It shares international experience, including examples of solutions that have proven ineffective in different countries.
"We share knowledge and experience—what has worked globally and what hasn't." "And strategic decisions are made at the state level," he explained.
"What did you enjoy most about interacting with Kyrgyz businesses and government?"
In response to this question, Khomyakov noted the high level of engagement of the Kyrgyz authorities in the digital agenda. He noted that it's rare for top government officials to have such a deep understanding of the technology and its potential.
"I'm responsible for dozens of countries, and I've never seen a president or top government officials so deeply versed in the topic and personally supporting such projects. This significantly reduces bureaucracy and speeds up decision-making," the Binance representative concluded.