Kyrgyzstan’s President Sadyr Zhaparov has officially signed a constitutional law that allows for the launch of a pilot project involving a central bank digital currency (CBDC), named the “digital som.”
Implemented through the law adopted by Zhogorku Kenesh on 20th March 2025, this law makes dramatic alterations to the country’s finances. The digital som, the national currency of the Kyrgyz Republic, will gain legal tender status within the country.
The new legislation provides the basis for the issuance and circulation of the digital som. The law bestows the sole right on the National Bank of Kyrgyzstan to issue the digital som as well as make arrangements for its circulation.
Digital Currency Gains Ground in Kyrgyzstan
The platform for issuing and circulating the digital currency CBDC will also be administered by the National Bank. This is an important milestone for the makeover of Kyrgyzstan’s monetary system by introducing a digital version of the som alongside the current paper currency.
The law makes it clear that the digital som is not only a notion but a valid, state-accepted unit of currency. People across Kyrgyzstan will accept the digital som as legal tender for all types of transactions, using it to pay for goods and services.
The National Bank will distribute the digital som exclusively through a specialized digital platform. The platform will manage the emission, accounting, and distribution of the digital currency, providing a secure and efficient mechanism for its functioning.
CBDC Positioned to Lead in Central Asia
The National Bank will secure the digital som with cryptographic tools. This will protect transactions and block fraud. The bank will manage the platform’s system. It will follow Kyrgyzstan’s payment laws.
This move helps modernize the economy. The pilot program will test the CBDC. It may bring faster payments and wider access to finance. It also offers a safer money system. Kyrgyzstan aims to lead in Central Asia’s digital currency shift.
The National Bank will add cryptographic security to the digital som. This will protect transactions and stop fraud. The bank will also maintain the platform’s infrastructure. It will follow Kyrgyzstan’s current laws on payment systems.
This step is key to modernizing the country’s economy. The pilot program will test the benefits of a CBDC. These include faster payments, better access to banking, and stronger security. By adopting digital currency, Kyrgyzstan aims to lead in Central Asia’s digital future.
