Kyrgyzstan MP: We must regulate digital currencies and develop a CBDC

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“Nothing is growing as fast as cryptocurrency,” a Kyrgyz Member of Parliament has stated in a speech in which he called on the country’s government to regulate the sector or risk falling behind in the digital currency revolution.

In his speech before the parliamentary committee on law and order, fighting crime, and combating corruption, Karim Xanzheza acknowledged the rapid surge in the adoption of digital currencies in the Asian country. Karim, who is also the deputy of parliament, called on the committee to make a move to legalize digital assets before its neighbors take the leap.

“Nothing is growing as fast as cryptocurrency. India has already announced that it will become a global hub for virtual assets,” he stated, as reported by local outlet AKIPress.

Kyrgyzstan can become a global hub for digital currencies, but only if the government moves quickly to foster its growth. One of the strategies the Central Asian country can use is onboarding highly qualified specialists in the world of digital assets and having them come to work from Kyrgyzstan. He said this strategy has already proven to be a success for the United Arab Emirates, which has become the digital currency leader in the Middle East.

Karim also called on Kyrgyzstan to develop its own central bank digital currency (CBDC). The legislator wants the National Bank of the Kyrgyz Republic to take the lead in its development, with support from the government.

The country has not made any significant moves towards developing a digital som, even as some of its neighbors have moved quite fast in their pursuit of CBDCs. One of its immediate neighbors, China, is a global leader on this front, and of all the big economies, its CBDC is the most advanced. China’s central bank has been conducting several pilots in major cities to test the viability of its digital yuan. It has even brought in banks, online retailers, and even local outlets to these pilots.

While it has yet to make any CBDC move, Kyrgyzstan has been looking to regulate the digital currency industry, proposing new regulations for exchanges in August last year. It has also become a block reward mining hub, which has unfortunately also brought about several illegal operations. In November last year, the Kyrgyz government shut down nearly 2,500 such illegal miners.

To learn more about central bank digital currencies and some of the design decisions that need to be considered when creating and launching it, read nChain’s CBDC playbook.

Watch: CoinGeek New York presentation, Increasing Footprints of BSV Blockchain in Middle East & South Asia