Tag: international

The post Why Trump Could Hate Kyrgyzstan’s New USD Stablecoin appeared com. Kyrgyzstan is preparing to launch a stablecoin denominated in US dollars but backed by its substantial gold reserves. Analysts argue that the move undermines Washington’s efforts to bolster the dollar’s dominance by using stablecoins to drive demand for US Treasuries. They also see it as a potential geopolitical test case for countries aiming to circumvent American sanctions. Sponsored USDKG Debuts With $50 Million Issuance Kyrgyzstan’s financial regulator announced on Wednesday the launch of its national stablecoin, USDKG, with an initial issuance valued at over $50 million. Unlike traditional stablecoins, USDKG is pegged to the US dollar but backed by physical gold reserves, making it the world’s first stablecoin of its kind. Kyrgyzstan’s decision to back its new stablecoin with gold stems from the country’s substantial reserves. The Central Bank currently holds around 340 tons of gold, while exports reached roughly 16 tons in 2024. Geological surveys also suggest over 1, 000 tons of confirmed reserves underground. By backing its stablecoin with gold instead of US Treasuries, Kyrgyzstan gains a strategic advantage. It can use USDKG to maintain cross-border payments and support international trade outside US oversight. Against this backdrop, the United States is likely viewing the development with significant concern. Sponsored Undermining US Plans for Stablecoins Kyrgyzstan is a close ally of Russia and firmly within the Eastern sphere of influence. Several of Kyrgyzstan’s banks have faced SWIFT-related sanctions from the United States, which have restricted their access to traditional cross-border payment networks. As a result, the country is following the path of nations like Russia and China, exploring stablecoins as an alternative means to facilitate cross-border transactions and sustain international trade. What happens if a government launches a stablecoin the U. S. doesn’t like? We might find out soon. Kyrgyzstan (the country) is launching a gold backed stablecoin. USDKG will be.