Kyrgyzstan’s President says CZ to launch a private digital

The President of Kyrgyzstan, Sadyr Japarov, announced that CZ, the founder of Binance, has created a private digital asset bank named Bereket Bank. 

The project is designed to attract significant global investment and specialize in virtual resources. Japarov insisted that the management and ownership of the bank do not involve the government or his family.

Private investment project

The President explained that Bereket Bank is a personal project aimed at improving the investment environment in Kyrgyzstan. He emphasized that neither the government nor his relatives should be involved in the operation of the bank. In response to reports that ex-Jogorku Kenesh Speaker Marat Sultanov and his son, Nurdoolot Nurgozhoev, were among the founders, Japarov indicated that he would like his family members to go into business on their own, as it would help boost the national economy. He also factored in that none of his family members will participate in government services in the future.

According to Japarov, his family members have already started working on the projects that attract investors to the country. He said it will seem like self-promotion to list all the programs his family participates in. The President encouraged the citizens of Kyrgyzstan to invest within the country and join in the nation’s development.

The collaboration between CZ and Kyrgyzstan

Japarov states that the concept of Bereket Bank was initiated when he suggested a state-sponsored digital asset bank. CZ refused to participate in a government-led project, instead opting to establish a private bank. The President indicated that Marat Sultanov was hired to set up the project because he had vast experience in the banking sector. CZ and Sultanov later suggested having Nurdoolot Nurgozhoev on board, and Japarov agreed to this after brief deliberations.

The President emphasized the fact that Kyrgyzstan has established good relations with CZ, which perceives the country as a potential partner in the development of blockchain and cryptocurrencies. In April, CZ signed an agreement with the National Investment Agency to facilitate digital innovation. Japarov stated that he was confident Bereket Bank would bring billions of dollars to Kyrgyzstan in terms of foreign investment.

Attention to virtual assets and public benefit

Bereket Bank will be a conventional bank that focuses on digital currencies and virtual assets. According to Japarov, the bank’s profits will be used to the advantage of the people, and some of it will be channeled towards social activities and helping orphaned and impoverished citizens. He claimed that the institution will open up new opportunities for investors as well as the Kyrgyz people.

Kyrgyzstan also introduced a stablecoin called KSGT, which was pegged to the national currency, som. The President ordered the Ministry of Economy to intensify legislation on digital assets and propose a state digital asset reserve within two months. The National Bank will also start testing the pilot digital som, which is a Central Bank Digital Currency, linking commercial banks and eventually government payments.

According to Japarov, the partnership with CZ marks a significant milestone in Kyrgyzstan’s digitalization. He believes that the establishment of Bereket Bank and its associated projects will enable the country to become a hub for virtual assets and blockchain technology in the region.