Binance Co-Founder CZ Backs Kyrgyzstan’s Crypto Reserve with BTC and BNB

Kyrgyzstan has partnered with Binance co-founder Changpeng “CZ” Zhao to establish a national cryptocurrency reserve backed by Bitcoin and Binance Coin, marking a major step forward in the country's digital finance and economic modernization strategy. This partnership reflects Kyrgyzstan’s ambition to integrate blockchain technology into its financial infrastructure, promote long-term financial stability, and position itself as a pioneer in the Central Asian region for crypto adoption.

Announcing on social media platform X, CZ stated that he had advised the Kyrgyz government to initially back its reserve with Bitcoin and Binance Coin, two of the most widely recognized and liquid cryptocurrencies in the world.

This strategic collaboration follows a memorandum of understanding (MoU) signed in April 2025 between Binance and Kyrgyzstan’s National Investment Agency (NIA). The MoU outlined cooperation on blockchain infrastructure development, technical consultation, and national-level education programs aimed at promoting digital literacy and crypto adoption. As part of the agreement, Binance will also launch Binance Pay in Kyrgyzstan, enabling faster and more secure crypto transactions for citizens and businesses.

Kyrgyzstan’s President Sadyr Zhaparov has signaled strong support for the country's digital transformation efforts. His administration has demonstrated a clear commitment to financial modernization, most notably through the recent signing of a law in April 2025 that authorizes a pilot project for a central bank digital currency (CBDC). The new law grants legal tender status to the digital som and provides the National Bank of the Kyrgyz Republic with the authority to issue and regulate it. These developments reflect a broader national strategy aimed at integrating blockchain technology into Kyrgyzstan’s financial infrastructure.

Furthering its ambitions, the Kyrgyz government is reportedly preparing to issue a gold-backed stablecoin, tentatively named the “Gold Dollar” (USDKG). Backed by approximately $500 million in physical gold reserves held by the Ministry of Finance, the stablecoin will be pegged to the U.S. dollar and designed to offer a stable digital alternative for cross-border trade and domestic savings. Officials say the launch could take place as early as Q3 2025, pending regulatory approvals.

CZ’s involvement with the Kyrgyz government comes amid his ongoing global outreach efforts since stepping down as CEO of Binance in late 2023. Though facing legal proceedings in the U.S., Zhao remains one of the most influential figures in the crypto space and continues to consult for governments and institutions seeking to integrate blockchain technologies.

Market watchers say Kyrgyzstan’s crypto strategy could become a model for similarly sized economies looking to leapfrog traditional banking limitations and attract digital investment. With a population of just under 7 million and limited access to global capital markets, Kyrgyzstan is betting that crypto can offer both economic resilience and financial inclusion.

As of May 6, 2025, Bitcoin is trading near $94,442, while Binance Coin is priced around $598.91. These valuations further reinforce their potential as reserve assets for Kyrgyzstan’s planned holdings.

Whether Kyrgyzstan’s digital pivot will bear long-term fruit remains to be seen. But for now, its proactive engagement with blockchain leaders like CZ signals a bold step into the future and a potential blueprint for other frontier markets navigating the new digital financial order.