The digital som represents an additional form of the national currency of the Kyrgyz Republic, known as the Kyrgyz som. This digital currency will be issued by the National Bank in electronic form and will be its responsibility. In 2022, the National Bank of the Kyrgyz Republic (NBKR) published a conceptual document outlining the Digital Som initiative.
The introduction of the digital som is anticipated to yield benefits for the population, businesses, financial market participants, and the government. It will enhance financial inclusion by increasing the accessibility and adoption of financial services, even in remote areas of the Kyrgyz Republic where individuals can engage in transactions and make payments for goods and services without requiring an internet connection (offline). This initiative is also expected to foster innovation within the realm of financial services. Leveraging distributed ledger technology will empower market participants to develop and offer new technological services and products to their customers, such as payment solutions and smart contracts. Additionally, it will contribute to the expansion of payment infrastructure for participants in the financial market. Furthermore, the integration of the digital som platform with similar platforms of other central banks is foreseen to simplify cross-border payments.
The proposed design model for the digital som follows a two-tier retail structure in which the National Bank establishes and manages digital som wallets for commercial banks, while commercial banks, in turn, create and maintain wallets for their customers within the digital som platform.
Source:
https://www.nbkr.kg/searchout.jsp?item=2145&material=108468&lang=RUS