Kyrgyzstan's President Sadyr Zhaparov has signed a law that permits the country's central bank to initiate a pilot project for the central bank digital currency (CBDC), known as the 'digital som.' This law grants the digital som legal tender status in digital form and gives the National Bank of the Kyrgyz Republic exclusive rights to issue it, establish issuance and circulation rules, and oversee the operating platform. Although the CBDC's final implementation decision is anticipated by the end of 2026, testing of the digital som platform is set for this year. The move follows a parliamentary amendment approved on March 18. While 115 countries are exploring CBDCs, only four have officially launched them. Critics within the crypto community raise concerns about potential financial privacy invasion and government oversight. In a related initiative, discussions with industry leaders like Changpeng Zhao are underway to foster the growth of the economy and secure virtual assets in Kyrgyzstan.

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