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Kyrgyzstan to Launch Gold-Backed Stablecoin USDKG in Q3
Kyrgyzstan to Launch Gold-Backed Stablecoin USDKG in Q3
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Kyrgyzstan is set to introduce USDKG, a gold-backed stablecoin pegged 1:1 to the U.S. dollar, by the third quarter. The project, advised by Gabriel Guerra, will be collateralized by $500 million in gold reserves from the Kyrgyz Ministry of Finance. Remittances, which make up 30% of the country’s GDP, are a key target for the stablecoin’s cross-border transfer capabilities.
The Ministry plans to expand gold reserves to $2 billion, with independent audits ensuring transparency. Gold’s liquidity and store-of-value appeal are central to the design, though price volatility remains a risk. Overcollateralization will be used to mitigate potential instability.
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