The government of Kyrgyzstan has officially decided to terminate the operation of its national stablecoin, Gold Dollar (USDKG), marking a significant shift in the country's digital asset strategy. In a decisive move reported on October 8, 2026, authorities ordered the Ministry of Finance to begin the liquidation process for the token's issuing entity and the nation's primary state-led trading platform. This development concludes a pioneering experiment in state-issued digital currencies that began less than a year ago.
Liquidation of EVA and Coin Nomad Exchange
The termination decree extends beyond the stablecoin itself, targeting the underlying infrastructure established to support the digital asset ecosystem. The government has mandated the dissolution of EVA (formerly known as the "Virtual Asset Issuer"), a state-owned company entirely controlled by the Ministry of Finance. Furthermore, Coin Nomad Exchange, which held the distinction of being Kyrgyzstan's first state-owned cryptocurrency exchange, has also been ordered to cease operations and undergo liquidation.
- Asset: Gold Dollar (USDKG)
- Issuer: EVA (Ministry of Finance subsidiary)
- Infrastructure: Coin Nomad Exchange
- Status: Mandatory Liquidation
The Rise and Fall of the Gold-Backed USDKG
Launched in November 2025, USDKG was initially presented as a landmark innovation in the global financial landscape. It was positioned by Kyrgyz authorities as the world's first state-issued stablecoin to be backed by physical gold reserves while maintaining a 1:1 peg to the US dollar. The project aimed to combine the stability of precious metals with the utility of digital ledger technology to facilitate domestic and international settlements. Despite these ambitions, the government has chosen to dismantle the framework, though specific reasons for the sudden termination were not disclosed in the initial reports.
The closure of these state-led initiatives reflects the volatile and complex nature of integrating blockchain technology into national monetary systems. While Kyrgyzstan was among the first to attempt a gold-backed sovereign digital currency, the liquidation of Coin Nomad and EVA suggests a period of reassessment for the country's involvement in the virtual asset market. Affected stakeholders and users of the exchange are expected to follow the Ministry of Finance's upcoming guidelines regarding the settlement of remaining claims and the redemption of existing USDKG tokens.
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