Kyrgyzstan’s President Sadyr Japarov disclosed last week that Binance founder Changpeng Zhao proposed to create a private digital asset bank, Bereket Bank. He also said the bank aims to attract large foreign investments and focus on virtual assets.
The head of state stressed that the bank is a private business project that is expected to attract significant investment into the country. He also confirmed that neither the government nor his family will be involved in the bank’s operations.
Japarov denies any ties of his family to Bereket Bank
He responded to questions about previous reports claiming that former Jogorku Kenesh Speaker Marat Sultanov and his son, Nurdoolot Nurgozhoev, were among the founders of Bereket Bank. Japarov said that he urges his family members to engage in business, start production, and attract investors to the country. He also added that none of his family members wishes to take part in government affairs in the future.
Japarov maintained that all his family members are engaged in private business that attracts investors to Kyrgyzstan. He also alleged that it would sound like self-promotion for his family if he were to list all the investors his relatives have brought in and all the projects they’re implementing.
The head of state promised to reveal in detail what his brothers have been doing, the projects Rustam has carried out, and the amount of investment they have brought into the country once his presidential term comes to an end.
Japarov argued that the whole world is currently moving toward virtual assets. He also confirmed that he had suggested to Zhao that Bereket Bank be made a state bank, but CZ said he doesn’t want to participate in a government project.
The President and CZ later agreed to open a private bank once his initiative to create a state bank was not supported. Japarov said he appointed Marat Sultanov to handle organizational matters, as he was an experienced banker. According to the report, CZ and Sultanov proposed that Nurdoolot also participate in the project, which the President later agreed to after some consideration.
Japarov also acknowledged that Kyrgyzstan has established friendly relations with CZ. He also said CZ sees interest in the country since it’s developing and has an uncompromising fight against corruption and organized crime. CZ signed an agreement with the country’s National Investment Agency in April and pledged to cooperate with the government in cryptocurrency and blockchain development in Kyrgyzstan.
The President argued that CZ doesn’t visit every country, and that many states have not had success in inviting him. He also believes that the techpreneur’s arrival in Kyrgyzstan will lead to the influx of billions of dollars in investment into the country through Bereket Bank.
Japarov revealed that other investors will also appear among the bank’s founders. The President also stated that the bank will benefit the state and its citizens.
The bank will operate as a regular bank, but will primarily focus on dealing with virtual assets and digital currencies. The head of state also argued that the bank will bring only benefits to the people of Kyrgyzstan. According to the report, the bank’s profits will be shared with the public, and assistance will also be provided to orphans and those in need.
Kyrgyzstan launches stablecoin on Binance’s BNB
Kyrgyzstan also unveiled a new stablecoin, KSGT, which is pegged to the country’s som currency. The country’s President also instructed the economic ministry to improve the legislative framework for digital assets, calling on the council to submit proposals for a state digital asset reserve within two months.
Japarova also instructed the National Bank to initiate pilot testing of the digital som, a Central Bank Digital Currency separate from the KGST stablecoin. According to a separate announcement, the CBDC will initially launch by connecting the National Bank with commercial banks to facilitate transfers. It will then connect the Central Treasury to enable social and government payments, followed by a test of offline or low-connectivity payments.
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