Kyrgyzstan has launched a national stablecoin called USDKG, valued at over $50 million, backed by gold and pegged to the U. S. dollar, according to the financial regulator. The government has also ordered a nationwide shutdown of crypto mining due to a worsening electricity shortage.
With a population of about 7 million, Kyrgyzstan aims to be a cryptocurrency leader in Central Asia, despite facing sanctions from Western countries targeting its crypto firms, linked to Russia. President Sadyr Japarov has urged Western nations not to politicize economic relations.
On October 31, 50,140,738 USDKG tokens were issued at a value of $1 each by a state-owned company. The government plans to support this token with $500 million in reserves, eventually aiming for $2 billion. All crypto mining farms were disconnected to conserve power due to low water levels at the nation’s main hydroelectric power plant.
With information from Reuters