Binance to launch crypto payments in Kyrgyzstan with new partnership

Update, May 5, 7:12 am UTC: This article has been updated with comments from Kyrylo Khomiakov, Binance’s regional head for Central and Eastern Europe.

Binance has signed a memorandum of understanding (MOU) with Kyrgyzstan’s National Agency for Investments to introduce crypto payment infrastructure and blockchain education in the country.

The MoU was formalized during the inaugural meeting of the Council for the Development of Digital Assets, attended by Kyrgyz President Sadyr Japarov, the exchange said in a May 4 press release.

As part of the agreement, Binance will introduce Binance Pay to Kyrgyzstan, enabling crypto-based transactions for visitors and residents.

The partnership also focuses on educational collaboration. Binance Academy will work with Kyrgyz government agencies and financial institutions to develop blockchain-focused learning programs.

“Binance is excited to partner with the National Agency for Investments of the Kyrgyz Republic to drive forward the development of crypto-assets in the region,” Kyrylo Khomiakov, Binance’s regional head for Central and Eastern Europe, said.

Khomiakov told Cointelegraph that the partnership “enables Binance to actively engage in dialogue and offer valuable insights and expertise in the development of the digital asset sector.”

On April 4, former Binance CEO Changpeng “CZ” Zhao said he would begin advising Kyrgyzstan on blockchain and crypto-related regulation after signing an MOU with the country’s foreign investment agency.

Related: Ex-Binance CEO chides Europe over crypto adoption

Despite its growing interest in crypto and digital assets, Kyrgyzstan has also revealed intentions to launch a central bank digital currency (CBDC).

On April 18, President Japarov signed a constitutional law authorizing the launch of a CBDC pilot project while also giving the “digital som” legal tender status.

Notably, Kyrgyzstan has a track record in cryptocurrency mining. The country’s abundant hydroelectric resources have made it an attractive location for crypto miners seeking low-cost energy.

Over 30% of Kyrgyzstan’s total energy supply comes from hydroelectric power plants, but only 10% of the country’s potential hydropower has been tapped, according to a report by the International Energy Agency.

Related: CBDCs ‘costly fiat copy’, not fintech success so far: Ex-Binance exec

Binance’s new partnership with the Kyrgyz government comes as the exchange has recently expanded its collaborations with governments worldwide, aiming to strengthen its global presence and influence in the cryptocurrency sector.

In an April 17 interview, CEO Richard Teng said the exchange has been advising multiple governments on establishing strategic Bitcoin reserves and formulating crypto asset regulations.

“We have actually received quite a number of approaches by a few governments and sovereign wealth funds on the establishment of their own crypto reserves,” Teng said.

On April 7, former CZ was appointed as an adviser to Pakistan’s Crypto Council, a newly formed regulatory body tasked with overseeing the country’s embrace of blockchain technology and digital assets. 

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