Updated, May 5, 7:12am UTC: This article was updated with comments from Kyrylo Khomiakov, Regional Director of Vinanence in Central and Eastern Europe.
Binance has signed a memorandum of understanding (MOU) with Kyrgyzstan’s national investment institution, implementing domestic cryptocurrency payment infrastructure and blockchain education.
The MOU was formalized at the inauguration meeting of the Digital Asset Development Council, attended by Kyrgyz President Sadir 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 education collaboration. Binance Academy will work with Kyrgyzstan government agencies and financial institutions to develop blockchain-centric learning programs.
“Binance is excited to partner with the National Investment Agency of the Kyrgyz Republic to promote the development of crypto assets in the region,” said Kyrylo Khomiakov, regional director of Binance in Central and Eastern Europe.
Khomiakov told Cointelegraph that the partnership “will enable Binance to be actively involved in dialogue and provide valuable insights and expertise in developing the digital asset sector.”
“Binance will play an advisory role in shaping Kyrgyzstan’s digital asset regulations to enhance the adoption of cryptocurrencies.”
On April 4, former Vinance CEO Changpeng “CZ” Zhao said he would begin advice to Kyrgyzstan on blockchain and crypto-related regulations after signing the MOU to the country’s foreign investment institutions.
Related: Former Binance CEO Cheers Europe More Than Crypto Adoption
President Kyrgyzstan signs the CBDC Act
Despite growing interest in crypto and digital assets, Kyrgyzstan has also made clear its intention to launch a central bank digital currency (CBDC).
On April 18, President Japarov signed the Constitutional Act, which approved the launch of the CBDC Pilot Project, providing the status of “Digital Som” fiat currency.
In particular, Kyrgyzstan has a track record of cryptocurrency mining. The country’s abundant hydropower resources have become an attractive place for crypto miners seeking low-cost energy.
According to an International Energy Agency report, over 30% of Kyrgyzstan’s total energy supply comes from hydroelectric power plants, but only 10% of potential hydroelectric power is tapped.
Related: CBDCS “Appreciable Fiat Copy” Not the success of Fintech so far: Ex-Binance Exec
Binance expands its collaboration with government
Binance’s new partnership with the Kyrgyz government aims to see the exchange recently expanding cooperation with governments around the world and strengthening its global presence and influence in the cryptocurrency sector.
In an interview on April 17, CEO Richard Teng said the exchange has advised several governments on establishing strategic Bitcoin reserves and developing cryptocurrency regulations.
“We have actually received quite a lot of approaches from several governments and sovereign funds on the creation of our own crypto reserves,” Ten said.
On April 7, the former CZ was appointed adviser to Pakistan’s Crypto Council. It is a newly formed regulatory body tasked with overseeing the acceptance of blockchain technology and digital assets.
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