Country Country Kyrgyzstan plans to make its debut in Gold Dollar, or USDKG, the Stablecoin on gold back, set at 1: 1 with the US dollar in the third quarter, said project advisor Gabriel Guerra in Coindesk at the Token2049 conference in Dubai.
The Stablecoin, supported by $ 500 million in gold from the Kirghizes Ministry of Finance, is designed to facilitate seamless cross -border transfers in a country where funding represents 30% of GDP.
The ministry aims to extend gold reserves to $ 2 billion, with independent audits planned to ensure the confidence and transparency of support for guarantees.
Gold has long been considered a very liquid value store without risk. However, its occasional price oscillations represent a potential risk for the stability of the stablecoin.
To mitigate this, the stablecoin will be upgraded, noted Guerra, adding that its main case would make capital moved through the borders.
“Stablecoin will be used in cross-border transactions and international trade with a first emphasis on Central Asia and expansion in Southeast Asia and the Middle East later,” said Guerra.
Note that the USDKG is not intended to follow gold prices like USDT or Paxg. Instead, it will only be supported by the gold reserves and issued and exchanged on a 1: 1 basis with USD, maintaining a stable value linked directly to the global reserve currency widely used in international trade.
USDKG holders can exchange their stables -coats for physical gold and other cryptographic assets or remove them in the form of fiduciary currency.
