Binance Founder CZ Denies Role in Kyrgyzstan’s New Bereket Bank Project

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Kyrgyzstan, a Central Asian nation, is showing growing interest in digital assets. 

The country has recently made headlines for its growing involvement with Binance founder Changpeng Zhao (CZ) in efforts to develop its crypto space. However, recent remarks from President Sadyr Japarov linking CZ to a new bank has drawn attention and sparked discussion online.

Kyrgyz President links CZ to Bereket Bank

In a recent interview with the Kabar news agency, President Sadyr Japarov spoke about the newly opened Bereket Bank, noting that the idea came from CZ. The new bank is a private business initiative and is expected to attract major investments to Kyrgyzstan. It will operate like any regular bank but is expected to focus on digital assets and virtual currencies.

President Japarov notes that the world is rapidly moving toward digital assets.

According to Japarov, CZ visited Kyrgyzstan in May and proposed creating a digital bank. Seeing a potential in the idea, Japarov initially suggested launching it as a state-owned institution. However he claimed that Zhao preferred a private venture. As a result, they agreed to establish a private bank.

Japarov also said that Zhao visited Kyrgyzstan because he recognized the country’s progress. He added that Zhao’s involvement could bring billions of dollars in investment through Bereket Bank. 

CZ Denies The Claims 

However, CZ refuted these claims noting that it was incorrect and he never proposed creating a bank himself. “This isn’t correct. Not quite ‘4’ FUD level, but still wrong,” he said in a now deleted post. He added that while he supports banks working with crypto generally, he has no personal interest in running one and does not recognise the name mentioned.

One user commented, “Next up: CZ spotted opening a lemonade stand in Bishkek” to CZ’s reply. CZ played along with the humor, replying, “I might have ‘proposed’ that”.

Kyrgyzstan Expands Crypto Initiatives

This comes as Kyrgyzstan continues to collaborate with CZ to advance its crypto push. 

The country has officially launched its national stablecoin on BNB Chain, and its central bank digital currency (CBDC) is ready for rollout.

Kyrgyzstan has also created a national cryptocurrency reserve, which includes BNB among its assets. CZ has also encouraged more crypto companies to explore Kyrgyzstan. 

President Japarov also issued several instructions, including improving the legislative framework for virtual assets, submitting proposals for a state cryptocurrency reserve within two months, and directing the National Bank to begin pilot testing of the digital som platform.

These developments highlight the country’s growing interest in digital assets and the efforts to strengthen its regulatory framework for virtual assets.