Kyrgyzstan to Launch Gold-Backed Stablecoin USDKG in 2025

According to BlockBeats, Kyrgyzstan is set to introduce the USDKG stablecoin in the third quarter of 2025. This digital currency will be pegged to the U.S. dollar at a 1:1 ratio and backed by physical gold reserves. Initially, the gold reserves will amount to $300 million, with plans to expand to $2 billion. The project has received authorization and support from the Kyrgyz Ministry of Finance and will be funded through gold purchases from the National Bank. USDKG will utilize an over-collateralization model to mitigate gold price fluctuations, allowing holders to redeem physical gold, cryptocurrencies, or fiat currency. The initiative aims to enhance cross-border payment infrastructure in Central Asia and promote international trade. To ensure transparency, the project will undergo independent third-party audits in the future.