Trump Paused CBDCs in Favor of Stablecoins: Yet Kyrgyzstan’s CBDC Represents the Upcoming Phase of the Splinternet
Kyrgyzstan is stepping into the domain of CBDCs (central bank-backed digital currencies) as President Sadyr Japarov greenlights the “digital som” for general use.
In a competitive landscape with Russia and Belarus, who are making strides towards their own CBDCs, the urgency to digitize national currencies intensifies. Indulge us for a moment… contemplate whether CBDCs could create a technological divide. Are we on the cusp of a “Splinternet?” revolution as some shun CBDCs while others accept them?
Let’s delve deeper.
CBDCs Legal Framework Paves the Way for Pilot Trials
Recently ratified amendments to the Constitutional Law of the Kyrgyz Republic are designed to support the initiation of a pilot scheme for the digital som. As per a communique from the president’s office, “The objective of the Constitutional Law is to commence a pilot project of a prototype for a national digital currency, the ‘digital som,’ while also establishing a legal framework and its designation.”
(source)
With authority now shifted to the National Bank, Kyrgyzstan’s digital som is set for practical testing later this year. A final decision regarding its rollout is anticipated in 2026.
Kyrgyzstan’s CBDC venture fits seamlessly into a larger global economic realignment. Countries like Nigeria, Jamaica, and the Bahamas are advancing their own CBDC initiatives, while the EU is hustling to finalize the next version of its euro. Conversely, the U.S. appears to be slow in its approach to a digital dollar.
ECB is deciding if they roll out #CBDC this October 2025.
Everyone in the EU
has the chance to speak up.
— Resist CBDC (@Resist_CBDC) April 16, 2025
Meanwhile, Belarus is targeting 2026 for the full operational capability of its digital ruble, with gradual access for businesses and individuals. Russia’s digital ruble is also in the pipeline, aiming for a mid-decade launch.
Could The CBDC Initiative Trigger a Splinternet?
For years, the darker corners of the internet, such as 4chan (RIP), have suggested that users may create an alternate Splinternet if centralized technologies such as CBDCs make their appearance. “They can’t arrest us all,” has become a common mantra.
The crux of the matter is that legislation regarding CBDCs may falter in Western nations due to its potential impact on corporate interests online. Content operates as currency. Simply put, trillions of dollars are reliant on the current operational structure of the internet.
Only time will tell. Many foresee an inevitable Splinternet conflict with the rise of AI, cryptocurrencies, and web censorship.
The splinternet will not be foolproof; vulnerabilities will exist. However, perhaps it is worth advocating for.
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Key Takeaways
- Kyrgyzstan is stepping into the domain of CBDCs (central bank-backed digital currencies) as President Sadyr Japarov greenlights the “digital som” for general use.
- Countries like Nigeria, Jamaica, and the Bahamas are advancing their own CBDC initiatives, while the EU is hustling to finalize the next version of its euro.
- Many foresee an inevitable Splinternet conflict with the rise of AI, cryptocurrencies, and web censorship.
The post Trump Shelved CBDCs for Stablecoins: But Kyrgyzstan CBDC Is Next Phase of Splinternet appeared first on 99Bitcoins.
