Kyrgyzstan is taking significant steps toward entering the era of central bank digital currencies (CBDCs), with President Sadyr Japarov recently signing legislation that grants legal recognition to the country’s prospective digital currency, the “digital som.
The amendments, which revise the nation’s constitutional financial framework, lay the foundation for a possible rollout of a CBDC in the near future. While a final decision on whether to issue the digital currency is still pending, the legislation ensures that if implemented, the digital som would have the same legal status as traditional fiat currency.
According to a statement published on the presidential website, the law aims to “enable the launch of a pilot prototype of a national digital currency and establish the necessary legal foundation for its development.”
Under the new provisions, the National Bank of the Kyrgyz Republic is authorized to develop and enforce rules governing payments made on the digital som platform. The amendments were initially approved by Kyrgyzstan’s Supreme Council on March 20 and mark a formal step forward in the nation’s exploration of digital financial infrastructure.
Kyrgyz authorities plan to begin testing the digital som later this year. However, the final verdict on whether the currency will be fully launched is expected sometime in 2026.
Globally, central bank digital currencies remain a subject of active debate. While some countries, such as the United Kingdom, Nigeria, and Jamaica, have embraced the concept and begun implementation, others — including the United States — have adopted a more cautious stance or shelved the idea altogether.
Kyrgyzstan’s move reflects a broader trend among emerging economies looking to modernize their financial systems and improve accessibility, security, and efficiency through digital innovation.
As the digital som enters its pilot phase, all eyes will be on how the central Asian nation balances innovation with economic stability and public trust.