The former CEO of Binance, Changpeng Zhao (CZ) has revealed that Kyrgyzstan, a country that was originally skeptical about crypto, has adopted it.
“Kyrgyzstan,” he wrote on his X page. “Crypto adoption, one country at a time. Also brought a Head of State to X.”
CZ’s tweet came shortly after he signed an agreement with the Kyrgyz National Investment Agency to help build the nation’s Web3 capacities. Kyrgyzstan’s A7A5 stablecoin, pegged to the Russian ruble and focused on emerging markets, is a cornerstone of that plan.
Kyrgyzstan🇰🇬
Crypto adoption, one country at a time.
Also brought a Head of State to X. https://t.co/jYYOdiJI4z— CZ 🔶 BNB (@cz_binance) April 3, 2025
How CZ is helping Kyrgyzstan
Thanks to the ton of experience he amassed as Binance’s CEO, CZ has claimed that he has been advising several governments “officially and unofficially” regarding crypto.
More countries worldwide are becoming increasingly interested in crypto integration, so it is not surprising that Kyrgyzstan, which has not been a particular hub for crypto activity, is shifting its stance, too.
According to recent announcements, the country is now in the process of developing a new A7A5 stablecoin pegged to the Russian ruble. CZ’s claim to be constantly working with world leaders who need his input on crypto holds up as he is a very influential figure in crypto and has been involved with a few official governments in his career.
CZ finds the help he provides these people meaningful and has said as much about it on X.
“I officially and unofficially advise a few governments on their crypto regulatory frameworks and blockchain solutions for gov efficiency, expanding blockchain to more than trading. I find this work extremely meaningful,”
~ Changpeng Zhao (CZ).
His connection with Kyrgyzstan’s new A7A5 stablecoin is yet to be fully disclosed, but it would align with recent allegations of Trump dealings.
“A Memorandum of Understanding has been signed between the National Investment Agency under the President of the Kyrgyz Republic and Changpeng Zhao (CZ). In accordance with the Memorandum, the parties intend to cooperate in the development of the cryptocurrency and blockchain technology ecosystem in the Kyrgyz Republic,” claimed President Sadyr Zhaparov in the MoU.
A Memorandum of Understanding has been signed between the National Investment Agency under the President of the Kyrgyz Republic
and Changpeng Zhao (CZ)
In accordance with the Memorandum, the parties intend to cooperate in the development of the cryptocurrency and blockchain…— Sadyr Zhaparov (@sadyrzhaparovkg) April 3, 2025
According to Zhaparov’s statement, the Binance founder will provide things like infrastructural, technological support, technical expertise, and consulting services on crypto and blockchain technologies.
The president also stated that this agreement with CZ will strengthen Kyrgyzstan’s standing in the growing Web3 environment. The long-term plan is to help create new opportunities for Kyrgyz businesses and society as a whole.
This will presumably involve some cooperation with Russia, as A7A5’s press release mentions “a new class of digital assets tied to the Russian economy.” Kyrgyzstan has strong ties with Russia. In 2012, both countries signed an agreement which led to the creation of a joint military base in Kyrgyzstan.
Kyrgyzstan’s move may be part of its strategy to capitalize on emerging markets. At best, this is a novel experiment that could reveal new market opportunities and challenge the dominance of USD-pegged stablecoins in the region.
Kyrgyzstan’s past relationship with crypto
Like many other places in the world, Kyrgyzstan initially approached crypto with lots of regulations in an attempt to protect its citizens from scams and the like. Of course, a large part of it also stemmed from the fact that the government knew only the bad things the mainstream media said about crypto.
Eventually, in 2020, the National Bank of Kyrgyzstan published draft legislation that would legally define cryptocurrency and how it may be used in the Central Asian nation.
The legislation was the central bank’s way of following the call of the Financial Action Task Force (FATF) to regulate cryptocurrencies and prevent related money laundering and terrorism financing risks, according to an explanatory note.
It was a necessary step to mitigate the risks as Kyrgyz’ citizens were becoming increasingly interested and exposed to cryptocurrencies, while the technology continues to gain traction in electronic commerce worldwide.
The regulator announced the proposed legislation on December 31, 2020, publishing it with a package of drafts detailing why the new bill was needed and how it fits into Kyrgyzstan’s existing regulations.
This laid the groundwork for Kyrgyzstan to adopt an even more comprehensive package of laws regulating the cryptocurrency market. This year, the country has introduced full legislation on digital assets, covering all major aspects of the industry — from exchanges to token issuers, thereby creating a new institutional infrastructure the market previously lacked.
One of the unique innovations is the mechanism for registering token issuances under official state supervision. This gives regulators authority to ensure that token emissions comply with regulatory requirements, have fiat backing, undergo regular audits, and meet obligations to token holders.
The first issuance of A7A5 (mint) was carried out in complete accordance with the new national legislation — under the control of regulatory authorities and directed to an officially registered, regulated broker.
The A7A5 token can be traded on the regulated exchange Meer Exchange and is expected to be listed on decentralized platforms in the future.
Its fiat backing is stored in bank accounts, and its volume is audited by an independent firm on a quarterly basis. However, the key advantage of A7A5 is the opportunity it offers to earn up to 20% annually, driven by its link to the refinancing rate of the Central Bank of the Russian Federation and additional income strategies in DeFi.
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