Kyrgyzstan's President, Sadyr Zhaparov, has signed a law granting legal status to the 'digital som', the country's national digital currency, marking a significant step in the nation's financial system. This law empowers the National Bank of the Kyrgyz Republic with the authority to issue and manage the digital som, including overseeing its issuance and platform operations.

Despite this progress, the final decision on officially issuing the CBDC isn't expected until the end of 2026. Thorough cryptographic security measures will also be necessary to ensure the currency's protection and to prevent fraudulent use.

The pilot project for the digital som is anticipated to commence this year. This move follows the Kyrgyzstan parliament's approval of a constitutional amendment in March, and it coincides with broader trends in the CBDC space, as over 115 nations embark on similar initiatives, though only a few have been officially launched.

Kyrgyzstan is also engaging with industry leaders, with former Binance CEO Changpeng Zhao offering advisory support on blockchain and crypto-related regulation. As part of ongoing efforts, these initiatives aim to foster economic growth and enhance the security of virtual assets, opening new opportunities for businesses and society.

The country's abundant renewable energy sources, primarily from hydroelectric power, support its positioning as a favorable environment for crypto mining operations.