CZ(CZ), founder of Binance, the world's largest cryptocurrency exchange, has proposed a joint venture with Nurdöölöt Nurgoyoev, son of Kyrgyz President Sadyr Japarov, to establish Bereket Bank, a private digital bank targeting the virtual asset market and planning to attract billions of dollars in international funding. The news, revealed on November 2nd, immediately brought Central Asian digital finance into the spotlight.
In an interview with the Kabar news agency on the same day, President Japarov emphasized that the bank is purely private and "does not use a single penny of public funds," adding that the government will maintain its role as regulator so that investors can "see Kyrgyzstan's new sincerity."
From Proposal to Preparation: The Formation of Bereket Bank
During his visit to Bishkek in May, CZ proposed establishing a bank centered on digital assets, on the condition that it operate entirely on a market-based basis. The Kyrgyz government will incorporate the plan into its digital transformation strategy, in conjunction with the digital som currently being tested and the KGST stablecoin based on the BNB Chain, hoping to connect domestic foreign exchange with on-chain payments.
The preparatory team invited former Speaker Marat Sultanov to serve as an advisor, responsible for governance structure and compliance design. Officials believe that leveraging his legislative and banking regulatory experience can reduce policy friction surrounding new business models and provide a clear legal entry point for overseas funds.
Political presence and transparency test
The president's son's direct investment has raised concerns about the intertwining of power and interests. Japarov publicly reiterated:
"We have nothing to hide from the people."
He pointed out that Kyrgyzstan's recent anti-corruption achievements were the main reason CZ was willing to settle there. However, scholars cautioned that in the future, it would be necessary to regularly disclose related-party transactions, establish independent directors and external audits to prevent the impression of a family business from eroding market trust.
A blueprint for operating virtual assets
Bereket Bank plans to offer three main services: trading, custody, and payment settlement. Its goal for the first three years is to attract over US$2 billion, approximately a quarter of Kyrgyzstan's GDP. The bank has pledged to allocate a portion of its profits to support orphans, widows, and infrastructure development in remote areas, aiming to garner social support through a "business + philanthropy" approach.
At the same time, the bank will integrate the KGST stablecoin with the upcoming digital som, allowing domestic and foreign users to complete currency exchange, payments and investments on-chain with one click, further strengthening Kyrgyzstan's position as a regional crypto hub.
If the plan is successfully implemented, Kyrgyzstan will receive new dollar cash flow and may encourage neighboring countries to follow suit. However, the volatile prices of crypto assets, cross-border money laundering, and hacking attacks are all potential risks. Regulatory authorities still need to improve KYC, AML, and stablecoin accounting standards to strike a balance between attracting funds and maintaining risk control.
