Kyrgyzstan to Launch Gold-Backed Stablecoin Pegged to USD

According to Odaily, Kyrgyzstan is set to introduce a gold-backed stablecoin, USDKG, pegged to the U.S. dollar in the third quarter of this year. The stablecoin will be supported by $500 million in gold reserves provided by the Kyrgyzstan Ministry of Finance. This initiative aims to facilitate smoother cross-border transfers, which currently account for 30% of the country's GDP. The stablecoin is specifically designed for cross-border transactions and international trade, initially targeting the Central Asian market with plans to expand into Southeast Asia and the Middle East. Future plans include increasing the gold reserves backing the stablecoin to $2 billion, according to sources familiar with the matter.