Global crypto exchange, Binance, is set to spearhead the introduction of cryptocurrency payment infrastructure in Kyrgyzstan, thanks to an alliance with the country’s National Agency for Investments. This step forward was achieved through the signing of a memorandum of understanding (MOU) announced on May 4.
The MOU was sealed during the first meeting of the Council for the Development of Digital Assets, where Kyrgyz President Sadyr Japarov was present. Under this MOU, Binance Pay will be launched in Kyrgyzstan, enabling local residents and visitors to transact using cryptocurrency.
Additionally, the collaboration extends to the educational sphere. Binance Academy will collaborate with Kyrgyz government agencies and monetary institutions to formulate blockchain-focused educational programs.
“Binance looks forward to collaborating with the National Agency for Investments of Kyrgyzstan to stimulate the growth of crypto-assets in the region,” commented Kyrylo Khomiakov, Binance’s regional head for Central and Eastern Europe.
On a related note, former Binance CEO, Changpeng “CZ” Zhao, revealed on April 4 that he would be advising Kyrgyzstan on crypto-related regulation and blockchain technology following the signing of an MOU with the country’s foreign investment agency.
Despite its increasing fascination with crypto and digital assets, Kyrgyzstan is also preparing to launch a central bank digital currency (CBDC). On April 18, President Japarov authorized a CBDC pilot project and gave the “digital som” legal tender status.
The abundance of hydroelectric resources in Kyrgyzstan has attracted crypto miners due to the low-cost energy. The International Energy Agency reported that hydroelectric power plants provide over 30% of Kyrgyzstan’s total energy, though only 10% of the country’s potential hydropower has been utilized.
Binance continues to broaden its collaborations with governments in a bid to fortify its global influence in the crypto sector. CEO Richard Teng revealed in an April 17 interview that the exchange has been advising several governments on establishing strategic Bitcoin reserves and formulating crypto regulations.
Former CEO CZ has also been appointed as an adviser to Pakistan’s Crypto Council, a regulatory body established to oversee the country’s adoption of blockchain technology and digital assets.
