Crypto HeadlinesKyrgyzstan Liquidates State Stablecoin USDKG
The Government of Kyrgyzstan has issued an official order for the complete liquidation of the state-backed stablecoin USDKG. The document, dated August 20, mandates the cessation of the project's operations across all supported blockchain networks.
The initiative to create a national digital currency failed to gain traction in the market. Operating for less than a year and backed by gold reserves, the project is now winding down its activities.
Authorities have defined the settlement procedure for token holders. Investors are offered two options for withdrawing funds:
- Conversion into fiat currency
- Exchange for the stablecoin USDT
This decision reflects a broader trend of reassessing state-backed digital asset projects in the region. The complete shutdown of the platform means closing access to smart contracts and transfer operations.
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