Kyrgyzstan's parliament has passed groundbreaking amendments to its virtual asset law in three readings, marking a significant step toward digital economic integration. The legislation, presented by Economy and Commerce Minister Bakyt Sydykov, establishes four key pillars: national crypto reserves allowing the government to hold cryptocurrencies as state assets, state-led mining operations to create new digital assets, stablecoin integration for more predictable financial transactions, and real-world asset (RWA) tokenization to convert tangible assets into digital tokens.
Minister Sydykov emphasized that the crypto reserve would help increase financial stability through diversification and new accumulation instruments. Notably, the government will not receive special mining rates and will operate under the same tariff structure as private entities, addressing concerns about energy supply issues. The minister specifically stated there would be no mining farms at thermal power plants, clarifying that energy infrastructure's primary purpose remains power generation.
This move positions Kyrgyzstan among pioneering nations exploring state-held digital assets, though its approach differs from El Salvador's Bitcoin legal tender model by focusing on reserves and mining operations. The legislation could serve as a model for other developing nations seeking to leverage digital assets for economic resilience and diversification.