Government stablecoins are digital assets issued or fully controlled by central banks. The main differences from private ones:
legal status of the national currency
100% backed by reserves in fiat or government assets
emission and burning only through the Central Bank
full accountability and regulatory protection
KGST (Kyrgyz Som Stable Token) is a stablecoin from the National Bank of the Kyrgyz Republic. Key characteristics:
fixed peg 1 KGST = 1 Kyrgyz som
Reserves are held in soms in the accounts of the NBKR.
Emission and redemption are carried out exclusively by the National Bank.
transactions are conducted through authorized blockchain protocols with full transparency
support for domestic transfers, payment for goods/services, and cross-border payments (including in the EAEU)
Advantages of KGST:
absence of de-pegging risk
minimal fees for transfers within the country
full compliance with national legislation
reduction of dependence on the US dollar in settlements
State stablecoins allow countries to maintain monetary sovereignty, simplify cross-border payments, and increase financial inclusion. KGST is one of the first real examples in the post-Soviet space.
What do you think: will state stablecoins gain widespread adoption in everyday payments? Share your thoughts in the comments!
@BinanceCIS $KGST #Stablecoins
