Kyrgyzstan has launched a national stablecoin and a central-bank digital currency (CBDC) in cooperation with Binance, President Sadyr Japarov announced. The stablecoin, known as A7A5, is backed by the Russian rouble and based in Kyrgyzstan.
The digital som, the national currency, is ready for government payments on the BNB Chain, Binance founder Changpeng Zhao said in a post. Zhao also noted a national cryptocurrency reserve has been set up and includes Binance’s BNB token. Kyrgyzstan, a republic of about seven million people, has increasingly positioned itself as a cryptocurrency hub in Central Asia.
Western governments have sanctioned the A7A5 stablecoin over concerns it enables sanctions evasion on Russia, adding geopolitical risk to the initiative.
President Japarov appointed Zhao as adviser on digital assets in May. The move comes as Kyrgyzstan prepares for a snap parliamentary election on November 30, with critics highlighting increasing control over dissent.
Trump Pardons Zhao
US President Donald Trump pardoned Binance founder Hangpeng Zhao on Thursday.
Zhao, widely known as CZ, previously pleaded guilty to money laundering violations.
A court sentenced him to four months in prison in April 2024.
Moreover, Binance admitted wrongdoing and agreed to pay a $4.3 billion fine.
White House Defends Decision
The pardon renewed debate over the administration’s support for cryptocurrency.
Critics argued the decision reflected Trump’s personal financial interests in digital assets.
White House Press Secretary Karoline Leavitt denied these claims.
She described Zhao’s prosecution as part of a Biden “war on cryptocurrency”.
Leavitt said Trump corrected what she called an excessive misuse of power.
Industry Influence and Political Ties
Binance spent nearly a year seeking Zhao’s pardon, according to media reports.
Trump had launched his own token shortly before his inauguration in January.
He later eased regulations on crypto operations in the United States.
He also promoted a national cryptocurrency reserve to expand industry adoption.
Zhao Expresses Gratitude
Zhao completed his sentence in September 2024 and later stepped down from leadership.
He thanked Trump for supporting fairness, innovation, and justice in America.
The pardon removes restrictions preventing Zhao from operating financial companies.
However, uncertainty remains about his regulatory status and any future role at Binance.
