Binance Founder Advises Kyrgyzstan To Adopt Bitcoin And BNB For National Crypto Reserve
Binance co-founder Changpeng "CZ" Zhao has recommended Bitcoin and BNB as the foundation for Kyrgyzstan's planned National Crypto Reserve. On May 5, Zhao shared this advice on social media following his appointment to the country's National Crypto Committee by President Sadyr Japarov . The proposal comes as part of a broader initiative where CZ has been officially advising the Kyrgyz National Investment Agency on blockchain and crypto-related matters Cointelegraph.
CZ visited Kyrgyzstan at President Japarov's invitation, where they held discussions over two days by Lake Issyk-Kul, exploring the potential of blockchain technology in the country's economic strategy CryptoSlate. This development marks a significant step in the Central Asian nation's increasing engagement with digital assets and blockchain technology.
Expanding Crypto Infrastructure Through Strategic Partnerships
The recommendation from CZ coincides with a formal partnership between Binance and Kyrgyzstan. On May 4, the cryptocurrency exchange signed a Memorandum of Understanding (MoU) with the National Agency for Investments under President Japarov during the inaugural session of the Council for the Development of Digital Assets Cointelegraph.
A key component of this partnership will be the rollout of Binance Pay in Kyrgyzstan, enabling crypto-based transactions for both locals and tourists. This initiative aims to simplify cross-border remittances with neighboring countries in the Eurasian Economic Union FXLeaders.
According to Kyrylo Khomiakov, Binance's regional head for Central and Eastern Europe, this collaboration represents "a shared vision for leveraging blockchain technology to create sustainable economic opportunities, improve financial inclusion and advance the freedom of money in Kyrgyzstan" Invezz.
Beyond payment infrastructure, the partnership will focus on education. Binance Academy will collaborate with Kyrgyz government agencies and financial institutions to develop blockchain-focused learning programs aimed at increasing digital finance knowledge among officials and the general public BeInCrypto.
Gold-Backed Stablecoin Initiative Complements Reserve Strategy
In parallel with the National Crypto Reserve plans, Kyrgyzstan is preparing to launch a gold-backed stablecoin called the Gold Dollar (USDKG) in the third quarter of 2025. Project advisor Gabriel Guerra told CoinDesk that the stablecoin will be backed by $500 million in gold from the Kyrgyz Ministry of Finance, with plans to expand reserves to $2 billion CoinDesk.
Unlike other cryptocurrencies that track gold prices, USDKG will maintain a fixed 1:1 value with the US dollar. This means gold reserves will serve as collateral, helping stabilize the token while ensuring liquidity The Cryptonomist. The stablecoin is overcollateralized to reduce the impact of gold price fluctuations TronWeekly.
Kyrgyzstan's approach stands out from other countries in Central Asia through its emphasis on market-driven solutions rather than strict central bank control. With remittances accounting for approximately 30% of the country's GDP, USDKG is positioned as an efficient tool for international transfers Cointelegraph.
Part Of A Global Trend Toward National Crypto Reserves
Kyrgyzstan's move to establish a National Crypto Reserve with Bitcoin and BNB reflects a growing global trend. Earlier this year, Bhutan's Gelephu Mindfulness City announced plans to include BTC, ETH, and BNB in its strategic reserves. In March 2025, US President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve, positioning the US as a major holder of Bitcoin Coin Edition.
Financial services giant Fidelity Digital Assets has predicted that several countries will begin stockpiling Bitcoin this year to hedge against "debilitating inflation, currency debasement, and increasingly crushing financial deficits" Decrypt.
Officials in Brazil have proposed legislation to create a national Bitcoin reserve, while politicians in Poland and Russia have endorsed adding the digital currency to their national balance sheets Decrypt. A member of Russia's parliament has called on its central bank to consider Bitcoin as a reserve asset, while speculation continues that Gulf Cooperation Council nations are quietly exploring similar strategies AGBI.
Economic Implications Of Digital Asset Adoption
The adoption of cryptocurrency reserves by Kyrgyzstan could have significant economic implications. By embracing Bitcoin, a nation can position itself as a tech-forward leader, potentially attracting crypto-savvy entrepreneurs, investors, and talent Fintechweekly.
Unlike El Salvador's Bitcoin experiment, Kyrgyzstan has taken a more strategic approach, focusing on economic security, institutional trust, and full-scale blockchain integration into its national economy Cointelegraph. Kyrgyzstan joins other pro-Bitcoin regions like the UAE, Switzerland, Singapore, and parts of the US that are fostering innovation with clear, crypto-friendly laws Cointelegraph.
The country has a unique energy advantage that could further benefit its crypto strategy. Over 30% of Kyrgyzstan's electricity comes from hydroelectric sources, with only 10% of its potential hydropower currently being utilized. This untapped energy resource provides a significant advantage for blockchain infrastructure, particularly for energy-intensive operations like crypto mining FXLeaders.
As more nations adopt digital assets into their reserve strategies, the move could potentially increase institutional confidence in cryptocurrencies and lead to broader acceptance and integration into traditional financial systems.
Related Reading on BTC Peers
For more cryptocurrency insights, read 100 Reasons for Bitcoin National Reserves on BTC Peers, which explores the strategic arguments for governments to adopt Bitcoin.
