The Kyrgyz Ministry of Finance issued a gold-backed note stablecoin Gold Dollar (USDKG), whose rate is pegged to the US dollar.
USDKG was initially created on the blockchains of two cryptocurrencies – Ethereum and TRON (TRX), but in the future, the coins are expected to appear on other digital asset networks, such as BNB (BNB). The precious metal reserves that ensure the stablecoin’s exchange rate are held by the Ministry of Finance and are audited by independent companies. Coins can be exchanged for dollars, soms, and virtual currency on the official Gold Dollar website after verifying your identity.
The developers suggest using USDKG for:
- Making cross-border money transfers, for example, to pay for imported goods;
- Earning passive income by blocking digital assets;
- Taking out loans secured by stablecoins;
- Conducting trading operations with cryptocurrencies;
- As a means of payment for tokenized assets.
It’s worth noting that the Gold Dollar smart contract’s functions allow the cryptocurrency’s creators to pause the processing of any digital asset transfers, lock stablecoins by blacklisting the crypto wallet address, and even burn frozen coins. Therefore, anyone caught using USDKG illegally risks losing their cryptocurrency.