The founder of Binance, CZ, is assisting Kyrgyzstan in initiating projects related to Web3 and stablecoins.

The Kyrgyz Republic has appointed CZ as a consultant on Web693 and cryptocurrency issues after signing a recent memorandum of understanding with its foreign investment agency. Kyrgyzstan is recognized as an ideal location for crypto mining, with over 30% of its energy generated from hydroelectric power. Changpeng “CZ” Zhao, the co-founder and former CEO of Binance, has entered into an MoU with the National Investment Agency of Kyrgyzstan to offer guidance on blockchain and cryptocurrency regulations and technologies. This partnership seeks to improve the technological infrastructure of the country while developing its A7A5 stablecoin, which is tied to the Russian ruble. Kyrgyzstan’s President, Sadyr Zhaparov, emphasized the significance of this collaboration in bolstering the nation’s tech framework, adopting innovative solutions, and providing training for experts in blockchain, virtual asset management, and cybersecurity. He stressed the importance of these initiatives for maintaining economic sustainability and ensuring the security of virtual assets, which in turn opens up new opportunities for businesses and society. In reaction to the announcement, Zhao reiterated his commitment to providing regulatory guidance, saying, “I advise a number of governments, both formally and informally, on their cryptocurrency regulations and blockchain solutions aimed at improving government efficiency, extending the application of blockchain beyond mere trading.” I consider this work to be very significant. Kyrgyzstan is regarded as a appealing location for cryptocurrency mining due to its plentiful renewable energy sources, especially hydroelectric energy. More than 30% of the nation’s energy comes from hydroelectric sources, yet only 10% of its hydropower potential has been harnessed, indicating a significant amount of unused resources. Additionally, the Kyrgyz parliament has passed a bill to create a legal framework for the digital som, the country’s central bank digital currency (CBDC). The National Bank of the Kyrgyz Republic will manage the issuance and regulation of this currency, with prototype testing planned for early 2025 and full system integration anticipated by January 2027. Zhao’s dedication to cryptocurrency regulation remains firm. Zhao’s advisory position in Kyrgyzstan fits into his wider involvement throughout Asia, where he has interacted with government representatives to explore blockchain and cryptocurrency projects.