The central Asian nation of Kyrgyssstan intends to launch its new Stablecoin later this year, one of the officials involved in its development has revealed.
The Kyrgyzian government has developed USDKG Stablecoin for months now as a solution to its economic inclusion and Remittance challenges. At a new digital asset event in Dubai, one of the project’s advisers revealed that Stablecoin will debut during the third quarter.
USDKG will be supported by gold of $ 500 million at launch, which the government intends to extend to $ 2 billion. To account for all swings in the price of gold – which has won 25%, or $ 650 this year – Kyrgyzstan will over -collaborate Stablecoin. The Government also intends to carry out regular independent audits to maintain confidence in the currency.
The new Stablecoin will mainly focus on transfers, which play a prominent role in the country’s economy. In 2024, Kyrgyzstan received $ 3 billion in transfers, with Russia to $ 2.7 billion that dominated the sector. Kyrgyz residents paid an average of 8% in fees for getting transfers (banks charge as much as 12%), higher than the global average of 6.6% and almost three times the non-recommended 3%.
The Kyrgergis government believes that a national Stablecoin can reduce costs, increase access and reduce the complexity involved in the process.
USDKG has taken precedence over Digital asthe country’s CBDC. Last year, the country’s central bank revealed that it had developed a demo version of the digital that and a few months later proposed legal changes that would pave the way for CBDC’s launch. Since then, it has not revealed any new development on that front.
ECB launches innovation hub to test cases of digital euro uses
Elsewhere, European Central Bank (ECB) has launched an innovation hub to test innovative use of its future digital euros.
ECB first announced Initiative in October last year and invites European stakeholders for the financial industry to submit Applications no later than November 29th. The regional bank has now selected 70 participants for four months hub, everything from fintechs and banks to technology companies and academia.
Surprisingly, only four banks – Caixabank (Nasdaq: Cixpf), Berenberg, Erste Group (Nasdaq: Ebkof) and Bank of Cyprus (Nasdaq: Bkcyf) – Joined the initiative. Other participants include the German semi -leader Giganten Infineon and subsidiary of Software Sap, Tata Consultancy, KPMG and Accenture (Nasdaq: ACN).
“We welcome the enormous interest that the market players have shown in this exciting initiative,” commented Piero Cipollone, a board member of the ECB.
The platform will have two distinct work currents: pioneers and visionaries. Under the pioneers’ work current, participants will limit their exploration to conditional payments and how the ECB can best develop technical standards to support them.
This workstream has 45 participants, including three of the four participating banks.
Companies in the visionaries Workstream will focus on the larger image, including how Digital euros Can solve societal challenges as economic inclusion. They will organize workshops with the ECB to discuss how the central bank digital currency (CBDC) may be more accessible, easier to use and integrate into existing payment rails.
Visionaries will include the Italian University PoliceCnico di Milano, Erste Group Bank, German Savings Bank Association DSGV and Blockchain Firm Exyond.
Some participants, such as Tata Consultancy, the German fintech company Pomo Service and Spanish mobile payment service Bizum, will be involved in both work stream.
“The breadth and creativity of the proposals highlights the potential of digital euro as a catalyst for financial innovation in Europe, including the development of new solutions that further improves the payment experience for Europeans and creates market (opportunities),” pronounced Cipollone.
The ECB will publish a report with results from both work current later this year.
The new initiative is the latest in ECB’s ongoing two -year -old CBDC preparationthat ends later this year. While the supervisory authority is involved in the project, the fate of digital euro lies in the hands of European legislators, which must adopt new legislation that paves the way for CBDC.
Talk to an outlet recently, a spokesman for the regional bank noted The CBDC legislation “is still being discussed and we will not decide to issue digital euros before that process is complete.”
The latest initiative comes as CBDC interest globally has cooled down After a distortion that was evoked by Western fear that China’s digital yuan would take over. But since then countries like the United States has rejected CBDCSWhile others like Canada have said that they focus on other, more critical financial innovations.
Look: Find ways to use CBDC outside digital currencies
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