Belarus to introduce digital ruble in H2 2026 (Interfax)
The National Bank of Belarus (NBB) reportedly plans to launch a digital ruble in the second half of 2026, starting with “economic agents” and expanding to government agencies and individuals in 2027. The central bank is cooperating very closely with Russian central bank and its central bank digital currency (CBDC) efforts to facilitate digital ruble cross-border transactions. Also, the NBB is working closely with government authorities to ensure that CBDC transactions can be tracked along the entire chain. [Read more at Interfax]
Kyrgyz central bank granted right to issue digital som (24.KG)
Kyrgyz Republic President Sadyr Japarov signed the constitutional law that will enable the National Bank of the Kyrgyz Republic (NBK) to launch a digital som pilot project and create a legal basis for the CBDC. The law was adopted by the Parliament on March 20, 2025. The law defines the digital som as the national currency of the Kyrgyz Republic in digital form, which is legal tender in the country. The central bank is granted the exclusive right to issue the digital som, and will establish the procedure for its issue and circulation, as well as organize and ensure functioning of the digital som platform. [Read more at 24.KG]
On November 20, 2024 the NBK had convened a meeting with the relevant ministries and agencies of the Kyrgyz Republic to discuss Phase II of the project for testing the prototype of the Digital Som platform in the context of state and social payments. During the meeting, the National Bank presented a draft architecture for the implementation of the “Balaga Suyunchu” (a one-time payment upon the birth of a child) project on the Digital Som platform. An agreement was reached to continue joint implementation of the project with technical specialists. [Read more at the NBK]
Crypto-assets and decentralized finance: functions and financial stability implications (BIS)
The Bank for International Settlements (BIS) published a paper on the financial stability aspects of crypto-assets and decentralized finance (DeFi), including smart contracts, decentralized exchanges (DEXs), stablecoins and new forms of central bank money. The paper’s findings suggest that, while the underlying economic drivers are not different than in TradFi, DeFi poses significant challenges, including new forms of information asymmetries, market inefficiencies and the risk of cryptoization in emerging markets. It proposes tailored regulatory interventions, such as embedding rules within smart contracts and strengthening the oversight of stablecoins, to manage financial stability risks. The paper also provides a framework for prudential regulation that can mitigate risks while fostering innovation. [Read more at the BIS]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
