Kyrgyzstan president Sadyr Zhaparov has signed a constitutional law that allows the launch of a digital digital bank pilot project while also giving “digital som” – the national currency in digital form – legal soft status.
The National Bank of the Kyrgyz Republic enacts an exclusive right to issue digital SOM, establish policies for its release and circulation, and oversee the platform where the national currency will operate, the office of the President of Kyrgyzstan Says On April 17.
However, a final decision on If Officially issuing CBDC were not expected until the end of 2026, local outlet trend news agency reported In December.
If the central bank decides to adopt digital som, it will also need to formulate cryptographic protection measures to ensure that digital som remains safe and not used for fraudulent transactions.
The SOM’s digital platform test is expected to take place this year.
Zhaparov’s sign-off was about a month after Kyrgyzstan’s parliament, Jogorku Kenesh, approved the amendment to Kyrgyzstan’s constitutional law on March 18.
CBDCs are constantly being criticized by some members of the crypto community, who have confirmed concerns that they can break financial privacy and enable over -the -government administration, among other things.
While 115 countries started CBDC projects, only four CBDCs were officially launched-the Bahamas Sand Dollar, E-Nigeria, Zimbabwe’s Zig and Jamaica’s Jamaica Jamaica, Zig and Jam-Dex, Jamaica, Data From the shows at CBDCTRACKER.org.
More than 90 CBDC projects have not been passed in the research stage.
Kyrgyzstan continues to make crypto motions
Earlier this month, Former Binance CEO Changpeng says “CZ” Zhao that he will do Start counseling with Kyrgyzstan In regulation related to blockchain and crypto after signing a memorandum of understanding the country’s foreign investment agency.
Zhaparov said the initiative will contribute to the economic growth and security of virtual ownership, “which generates new opportunities for businesses and societies as a whole.”
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The mountainous, locked country is considered Well suited for crypto mining surgery because of its abundance changeable sources of energy, Most of these are underutilized.
More than 30% of Kyrgyzstan’s total energy supplies come from hydroelectric power plants, but only 10% of the country’s potential hydropower is that, have been According to In a Report of the International Energy Agency.
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