**A blow to the gut**
Launched in 2025, USDKG—the world's first state gold stablecoin, backed by the precious metal and pegged to the US dollar—has ceased to exist. The project was personally presented by the President of Kyrgyzstan, Sadyr Japarov, with an initial issuance volume of 50 million coins and the prospect of attracting up to two billion dollars in investment. Changpeng Zhao, the founder of Binance, the largest cryptocurrency exchange, was brought in as a consultant for the development.
The reason for winding down the ambitious digital initiative was sanction restrictions imposed by the United Kingdom. London blacklisted the issuing company, claiming it allegedly conducts "business of significance to the Government of Russia." In an attempt to save the entity, the issuer changed its name to "EVA," but the authorities of Kyrgyzstan decided to liquidate the organization, close the first state cryptocurrency exchange Coin Nomad Exchange, and halt all trading of the USDKG token.
Officially, the Cabinet of Ministers of the republic explained the closure of the entities as "optimization of state participation in business entities and improvement of state asset management." However, experts believe that the sovereign digital project fell victim to the harsh policies of the West.