Kyrgyzstan has officially entered the central bank digital currency (CBDC) race. On April 17, President Sadyr Zhaparov signed a landmark constitutional law granting legal tender status to the proposed digital som and authorizing the launch of a national pilot program.
The law gives the National Bank of the Kyrgyz Republic full control over the issuance and regulation of the digital som. This includes setting rules for circulation, managing the currency’s infrastructure, and enforcing security through cryptographic safeguards.
While the pilot program is set to begin later this year, a final decision on full-scale issuance is expected by the end of 2026. The National Bank will use the trial phase to evaluate the currency’s technical feasibility and economic utility within Kyrgyzstan’s financial system.
Kyrgyzstan Pushes Ahead as Global CBDC Debate Grows
President Zhaparov’s endorsement of the digital som follows parliamentary approval on March 18 by the Jogorku Kenesh, Kyrgyzstan’s legislative assembly. The swift passage from draft to law signals the country’s determination to play a serious role in the digital finance arena.
Globally, CBDCs remain controversial. While more than 115 countries have launched exploratory efforts, critics—particularly privacy advocates and parts of the crypto community—warn of potential overreach. Concerns include increased surveillance, loss of financial autonomy, and centralized control over digital assets.
Despite the attention CBDCs have received, only a few countries have launched official versions. According to cbdctracker.org, just four CBDCs are live: the Bahamas’ Sand Dollar, Nigeria’s e-Naira, Zimbabwe’s ZiG, and Jamaica’s JAM-DEX. Over 90 others remain in early development stages.
By granting legal tender status to its digital currency, Kyrgyzstan joins a small but growing cohort of nations making legislative commitments toward CBDC adoption, even as the global conversation over risks and benefits continues.
Energy Assets Could Power Kyrgyzstan’s Digital Finance Vision
Alongside its digital currency push, Kyrgyzstan has a strategic asset that could boost its position in the crypto space: renewable energy. The mountainous country is rich in hydropower, offering a cost-effective and sustainable base for blockchain infrastructure.
According to the International Energy Agency, hydroelectricity currently accounts for over 30% of the nation’s energy mix. Yet, only about 10% of its full hydropower potential has been tapped. This vast reserve positions Kyrgyzstan as a strong candidate for hosting energy-intensive operations such as crypto mining and digital asset infrastructure.
As global regulators scrutinize the environmental footprint of crypto networks, Kyrgyzstan’s clean energy surplus could become a critical advantage—particularly as the country moves toward piloting and potentially adopting a CBDC.
Quick Facts
- President Sadyr Zhaparov signed a law granting legal tender status to the digital som
- The National Bank will oversee the CBDC pilot, with a final decision expected by 2026
- Kyrgyzstan is among the few countries moving toward full CBDC legislation
- The country’s abundant renewable energy supports crypto mining ambitions
