Binance has signed a memorandum of understandingย (MOU)ย with Kyrgyzstanโs 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.
โBinanceย is excited to partner with the National Agency for Investments of theย Kyrgyz Republicย to drive forward the development of crypto-assets in the region,โ Kyrylo Khomiakov, Binanceโs regional head for Central and Eastern Europe, said.
On April 4,ย former Binance CEO Changpeng โCZโ Zhao said he wouldย begin advising Kyrgyzstan on blockchain and crypto-related regulation after signing an MOU with the countryโs foreign investment agency.
Related: Ex-Binance CEO chides Europe over crypto adoption
Kyrgyzstan president signs CBDC law
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 โdigital somโ legal tender status.
Notably, Kyrgyzstan has a track record in cryptocurrency mining. The countryโs abundant hydroelectric resources have made it an attractive location for crypto miners seeking low-cost energy.
Over 30% of Kyrgyzstanโs total energy supply comes from hydroelectric power plants, but only 10% of the countryโs potential hydropower has been tapped,ย according to aย report by the International Energy Agency.
Related: CBDCs โcostly fiat copyโ, not fintech success so far: Ex-Binance exec
Binance expands collaborations with governments
Binanceโs 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 beenย advisingย multiple governments on establishing strategic Bitcoinย reserves and formulating crypto asset regulations.
โWe have actually received quite a number of approaches by a few governments and sovereign wealth funds on the establishment of their own crypto reserves,โ Tengย said.
On April 7, former CZ was appointed as an adviser to Pakistanโs Crypto Council, a newly formed regulatory body tasked with overseeing the countryโs embrace of blockchain technology and digital assets.ย
Magazine: Bitcoin to $1M โby 2029,โ CIA tips its hat to Bitcoin: Hodlerโs Digest, April 27 โ May 3
