The country of Central Asia, Kyrguistan, plans to debut the gold dollar, or Usdkg, the stablecoin backed by gold linked 1: 1 with the US dollar in the third quarter, said the advisor of the Gabriel Guerra project to Coindeesk at the Token2049 conference in Dubai.
The Stablecoin, backed for $ 500 million in gold from the Kyrguistan Ministry of Finance, is designed to facilitate cross -border transfers without problems in a country where remittances represent 30% of GDP.
The Ministry aims to expand gold reserves to up to $ 2 billion, with independent audits planned to guarantee trust and transparency in collateral support.
Gold has long been considered as a highly liquid and risky value store. However, their occasional price changes represent a potential risk for the stability of the stable.
To mitigate this, the stablcoin was overlazed, said Guerra, and added that his main use case would be to move capital through the borders.
“The stablecoin will be used in cross -border transactions and international trade with an initial approach to Central Asia and the expansion to Southeast Asia and the Middle East planned for later,” said Guerra.
Keep in mind that USDKG is not destined to track gold prices such as USDT or PaxG. On the other hand, it will be backed only by gold reserves and will be issued and exchanged with a 1: 1 base with USD, maintaining a stable value directly linked to the global reserve fiduciary currency widely used in international trade.
USDKG holders can exchange their stable for physical gold and other cryptographic assets or withdraw them as a fiduciary currency.
