Kyrgyzstan’s president signs CBDC law giving ‘digital som’ legal status

Kyrgyzstan's President Sadyr Zhaparov has signed a constitutional law allowing the launch of a central bank digital currency pilot project, giving the digital som legal tender status. The National Bank of the Kyrgyz Republic will have the exclusive right to issue the digital som and oversee its circulation. A final decision on officially issuing the CBDC is not expected until the end of 2026. The central bank will need to outline cryptographic protection measures to ensure the digital som's security. Testing of the digital som platform is expected to take place this year. Zhaparov's sign-off comes after Kyrgyzstan's parliament approved the amendment to the constitutional law. The move is part of Kyrgyzstan's efforts to develop its crypto industry, with the country well-suited for crypto mining due to its abundant renewable energy resources. Former Binance CEO Changpeng Zhao will advise Kyrgyzstan on blockchain and crypto-related regulation. The country aims to use the digital som to boost its economy and generate new opportunities for businesses and society.