Binance.com Founder Changpeng Zhao Is Now Advising the Kyrgyz Government on Blockchain Implementation

Changpeng Zhao, a well-known figure in the cryptocurrency industry, met with Sadyr Japarov, President of Kyrgyzstan, on May 3 to discuss cooperation in introducing blockchain technologies and a digital national currency.

Japarov and Zhao also participated in the inaugural meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies the following day.

The president and Zhao, who is known as CZ in the crypto community, discussed cooperation in the field of digital assets, in particular, readiness for consultations of specialists from Kyrgyzstan on the introduction of digital national currency and educational programs for training specialists, according to a statement released by Japarov’s press service.

The meeting was attended by members of the government, deputies of the parliament, the leadership of the National Bank, and heads of relevant ministries and departments.

Japarov highlighted the importance of a unified state policy in the field of virtual assets and blockchain technologies, for their application in state administration and in key sectors of the country.

The head of state noted the increasing role of these technologies in the modern world and the need to adapt the legal framework of Kyrgyzstan to new realities.

Japarov added that the use of blockchain technologies will promote greater transparency and traceability, and reduce the level of bureaucratization in governmental affairs.

Kyrgyzstan has experienced an uptick in corruption since Japarov assumed the presidency in 2021, according to watchdog groups. In its most recent Corruption Perceptions Index, Transparency International ranked Kyrgyzstan 146th out of the 180 countries surveyed.

Meanwhile, the widespread use of blockchain technologies could strain Kyrgyzstan’s already challenged electricity grid. Buildings used to house cryptocurrency mining can create a massive strain on local electricity grids, with a single crypto transaction consuming more energy than that required to power 6 houses for a day in the U.S, according to US Environmental Protection Agency findings. The estimated global annual energy consumption of the current cryptocurrency market is over 68 TWh, equivalent to more than 19 coal-fired power plants operating continuously.

Zhao pleaded guilty to criminal charges and served jail time in 2024. According to the US Justice Department, Zhao failed “to maintain an effective anti-money laundering (AML) program, in violation of the BSA” while heading Binance.com.