Kyrgyzstan Grants Legal Status to Digital Som in CBDC Push

Kyrgyzstan has taken a major step toward launching its own central bank digital currency (CBDC), as President Sadyr Japarov signed legislation granting the "digital som" legal status. Although the country has not yet committed to issuing the CBDC, the move lays the legal groundwork for its potential rollout.

The newly signed amendments to the Constitutional Law of the Kyrgyz Republic establish that, if issued, the digital som will be recognized as legal tender. The legislation enables the National Bank of the Kyrgyz Republic to set rules for payments using the digital currency and paves the way for the development of a digital payment infrastructure.

According to an official statement on the president’s website, the law’s objective is to launch a pilot project for a prototype of the national digital currency and create a comprehensive legal framework. The changes were initially adopted by Kyrgyzstan's supreme council on March 20.

Local reports indicate that the country plans to begin testing the digital som later this year. However, a final decision on whether to fully launch the CBDC is expected sometime in 2026.

Kyrgyzstan joins a growing list of countries exploring or implementing CBDCs. The Bahamas, Nigeria, Jamaica, and the European Union have already advanced in their respective CBDC initiatives, while countries like the United States remain cautious or have scaled back their efforts.

CBDCs have sparked debate among crypto advocates, who argue that they could infringe on financial privacy. Nevertheless, supporters believe state-backed digital currencies can enhance financial inclusion and improve payment systems. Kyrgyzstan’s latest move signals a growing interest in digital currency adoption within Central Asia.