Kyrgyzstan has just issued the national stablecoin USDKG, the initial amount is about 50.14 million Token, face value USD 1, issued by a state-owned enterprise under the Ministry of Finance and guaranteed by gold reserves.
USDKG is aimed at cross-border payments and trade; the government plans to increase the reserve to around USD 500 million and gradually move towards USD 2 billion. At the same time, due to the lack of electricity, all domestic cryptocurrency mining farms have been closed.
- Initial issuance: approximately 50.14 million USDKG, each Token worth USD 1.
- Issued by state-owned enterprises, backed by gold reserves, used for cross-border payments.
- Due to power shortage, entire crypto mining farm shut down; power cuts and electricity imports applied.
Overview of USDKG
USDKG is the national stablecoin of Kyrgyzstan, with an initial issuance of approximately 50.14 million Token with a face value of USD 1 and backed by gold.
Token issued by state-owned enterprises under the management of the Ministry of Finance. The main objective is to serve cross-border payments and trade, to increase the stability of international transactions and foreign exchange reserves in the form of collateralized cryptocurrencies.
Issue scale and reserve increase roadmap
The initial issuance is around 50.14 million Token; the government aims to increase the reserve size to around USD 500 million, then move towards around USD 2 billion.
The increase in the size of the reserves indicates a plan to expand liquidation and the ability to use USDKG in larger transactions. This increase requires corresponding foreign currency or gold reserves as collateral, and also requires a suitable legal framework and payment infrastructure.
Impact on cryptocurrency mining and the power system
Due to the power shortage, Energy Minister Talaybek Ibraev announced that all domestic cryptocurrency mining farms have been closed; the government has implemented power rationing and imported electricity from neighboring countries, including Russia.
Mining closures are intended to relieve pressure on the grid and stabilize domestic supply. The measures to import electricity and allocate cuts indicate a priority for ensuring essential services; Miners will be impacted and may need to relocate or wait for energy policy adjustments.
Policy implications and risks
The issuance of a gold-backed state-backed stablecoin is a step towards tighter regulation of cryptocurrencies and promoting official payments.
However, risks include dependence on collateral reserves, balance of payments impacts, and payment infrastructure needs. At the same time, the curtailment of mining activity reflects the grid capacity and energy management challenges of developing cryptocurrency services.
What is USDKG?
USDKG is the national stablecoin of Kyrgyzstan, with an initial issuance of approximately 50.14 million Token, denominated in USD 1 and backed by gold reserves.
Who issues and guarantees USDKG?
USDKG is issued by a state-owned enterprise under the Ministry of Finance of Kyrgyzstan, with a commitment to guarantee by the State's gold reserves.
What is USDKG used for?
This cryptocurrency is intended to serve cross-border payments and trade, helping to create a stable means of transfer pricing for international transactions.
Why is cryptocurrency mining closed?
Mining farm closures due to power shortages; government implements power supply cuts and imports to ensure grid stability for essential needs.
