BNB Chain & Kyrgyzstan are allies

The Central Asian country of Kyrgyzstan has launched a new stablecoin called KGST, which is pegged 1:1 to its national currency, the som, Kyrgyz President Sadyr Japarov announced on Friday. The announcement was also attended by Binance founder Changpeng Zhao (CZ), highlighting the close relationship between Kyrgyzstan and CZ.
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CZ signed an agreement with the Kyrgyz government in April to cooperate on cryptocurrency and blockchain development.
Now, after the second meeting of the country’s National Council for the Development of Virtual Assets and Blockchain Technologies, Kyrgyzstan has launched its KGST stablecoin, which is pegged to its som.
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In addition to the KGST stablecoin, the government of Kyrgyzstan is also working on a CBDC (Central Bank Digital Currency) project to be issued by the central bank. This digital som is separate from the KGST stablecoin, and the digital som test will include connecting all local banks and testing how to make payments without the internet. After testing all these steps, the digital som will be implemented for use nationwide, making the digital som an interesting CBDC project.
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The newly announced KGST stablecoin is built on the BNB chain and will be able to increase the activity of the BNB chain. With such on-chain activity, the price of BNB has become stable around $1,000 and seems to be looking to rise further. However, amid the economic and political news, BNB’s trajectory can be varied.