The National Bank of Kyrgyzstan is studying cryptocurrencies, but is not yet ready to include them in its reserves

The head of the National Bank, Melis Turgunbaev, shared his opinion on including cryptocurrencies in foreign exchange reserves on his Facebook page. While some central banks are discussing this possibility, the National Bank of Kyrgyzstan is exercising caution for several key reasons.

"We adhere to the core principles of managing foreign exchange reserves, such as ensuring their safety, liquidity and profitability. Reserves must be allocated only in reliable and low-risk assets," — Melis Turgunbaev stated.

He emphasized that the high volatility of cryptocurrencies and sharp fluctuations in their value make digital assets an extremely risky choice for reserves, which are meant to serve as a guarantee of economic stability.

"The liquidity of cryptocurrencies depends on regulatory conditions in different countries. Tightening legislation in some jurisdictions may limit the accessibility and use of digital assets, creating additional risks for the country. Moreover, cryptocurrencies have not yet gained international recognition as a reliable tool for forming reserves," — wrote the head of the NBKR.

At the same time, he noted that the National Bank of Kyrgyzstan continues to explore the potential of digital currencies and new financial technologies. Currently, the focus is on developing its own digital currency — the "digital som," which can be tailored to meet the needs of the country's economy and minimize potential risks.

"We will continue to monitor global trends and analyze their applicability to Kyrgyzstan to make balanced and informed decisions aimed at ensuring financial stability and transparency in the country," — concluded Turgunbaev.

Stay informed! Subscribe to our Telegram.