Page 9 – The Times Of Central Asia

02 Dec 2025

Central Asia’s Digital Currency Ambitions: New Opportunities and Old Constraints

December 2, 2025
By Times of Central Asia

Central Asia is entering a period of accelerated financial transformation. Kyrgyzstan has launched one of the world’s first state-backed gold-backed stablecoin, USDKG, a digital asset fully backed by physical gold and issued under the direct supervision of the Ministry of Finance.

Simultaneously, Kazakhstan is advancing one of the most mature central bank digital currency (CBDC) initiatives in the post-Soviet space: the digital tenge (national currency). Uzbekistan is developing its own digital economy framework, while Tajikistan and Turkmenistan are slowly initiating financial modernization.

Amid these developments, Central Asia is emerging as a surprisingly bold laboratory for digital finance. This raises a pressing question: can the region develop a unified digital currency ecosystem that reduces dollar dependency, facilitates cross-border transactions, and enhances economic sovereignty?

Strategic Logic of Digital Integration

The idea of a regional digital currency is no longer utopian. Central Asia is one of the world’s most significant hubs for cross-border remittances. In 2024 alone, migrants sent back a record $5.8 billion to Tajikistan (45% of GDP), approximately $15 billion to Uzbekistan, $2.9 billion to Kyrgyzstan, and $258 million to Kazakhstan.

The current system is costly, slow, and heavily reliant on the dollar. Digital currencies could drastically reduce transaction costs for both migrant workers and businesses.

In remote areas, where banking infrastructure is underdeveloped, cash still dominates. CBDCs could allow citizens to access state payment services directly, bypassing commercial banks.

Digital finance also offers protection against external economic shocks, sanctions, and volatility. Coupled with the digitalization drives in Kazakhstan, Uzbekistan, and Kyrgyzstan, and regional integration ambitions, such as Uzbek President Shavkat Mirziyoyev’s proposal to create a Central Asian Community, conditions are forming for financial cooperation.

Diverse National Models

Approaches to digital currency vary significantly. Kazakhstan’s digital tenge, led by the National Bank, emphasizes institutional stability, security, and integration with existing banking systems. A full launch is expected by the end of 2025.

Kyrgyzstan has taken a more unconventional route. Its USDKG stablecoin, built on the Tron blockchain and backed by gold, aims to assert financial autonomy. However, it raises concerns about transparency, sustainability, and the reaction of traditional banks. A gold-backed stablecoin also directly challenges dollar dominance. Crypto analysts such as Ryan Adams speculate that Washington may be monitoring Kyrgyzstan’s experiment closely, fearing it could inspire similar moves in India, China, and Brazil.

Uzbekistan is advancing its digital economy cautiously. While its government maintains strict cryptocurrency controls, this regulatory clarity may lay groundwork for a CBDC, though it limits space for innovation.

Tajikistan and Turkmenistan remain on the sidelines, but rising demographic pressures, migration, and logistics projects are nudging both toward digital finance.

The lack of coordination among these models represents both an opportunity for experimentation and a barrier to integration.

Key Challenges

Despite growing momentum, the road to a unified digital architecture in Central Asia remains fraught.

The first major obstacle is regulatory fragmentation. Digital currencies require legal reforms across currency legislation, taxation, customs, and anti-money laundering/counter-financing of terrorism (AML/CFT) protocols. At present, each state operates independently, making regional harmonization nearly impossible.

Technical divergence is another hurdle. The digital tenge, USDKG, and future Uzbek platforms all rely on distinct technological infrastructures. Without interoperability, cross-border payments will remain inefficient or insecure.

Scalability and cybersecurity present additional concerns. A regional system for 80 million people must handle millions of transactions per day with robust protections, capabilities that no individual country currently possesses.

Monetary sovereignty is the most politically sensitive issue. Central banks remain cautious about ceding any control to supranational structures. While regional trust is improving, it is not yet deep enough to support joint monetary governance.

Geopolitically, Central Asia lies at a complex crossroads. Any move to bypass the dollar or SWIFT payment system will inevitably draw attention from major powers. China is expanding the digital yuan, Russia promotes its SPFS system, and the U.S. guards its financial hegemony through sanctions and infrastructure control. A regional payment system will face scrutiny and possible pressure from all sides.

A Pragmatic Path Forward

Despite these challenges, Central Asia has realistic options for gradual integration. One initial step could be the creation of a regional digital payment gateway, similar to Europe’s SEPA, allowing instant transfers without reliance on SWIFT.

The next phase would involve harmonizing know-your-customer (KYC) and AML standards, establishing a shared digital identity, and aligning key regulations. This would foster trust and predictability.

Simultaneously, countries could adopt a “CA-Interoperability Standard” to ensure technical compatibility between CBDCs and stablecoins without compromising national sovereignty.

Pilot projects could begin in sectors where regional cooperation already exists, such as trade, energy, and water resource management, particularly within the framework of the Middle Corridor.

Central Asia has the potential to become one of the world’s most dynamic regions for digital finance. A single currency remains an elusive goal, but a functionally integrated, interoperable payment network is within reach.

The launch of the USDKG and the digital tenge shows that Central Asia is not just catching up, it is setting its own path. If trust can be strengthened and technological standards aligned, the region may gain not only economic resilience but a meaningful voice in shaping the future of global finance.

02 Dec 2025

Central Asia, Environment, Kazakhstan Environment, Home, Kazakhstan, Kazakhstan Home

Kazakhstan’s Ecology Ministry Says Saiga Population May Surpass Five Million in 2026

December 2, 2025
By Dmitry Pokidaev

Kazakhstan’s saiga antelope population, a key indicator of steppe ecosystem health and a globally vulnerable species, has reached unprecedented levels. According to the Ministry of Ecology and Natural Resources, the population now numbers approximately four million. Following the 2026 calving season, that figure could rise to nearly five million, cementing Kazakhstan’s role as the primary global habitat for the species.

At a recent meeting on sustainable saiga population management, Minister of Ecology Yerlan Nyssanbayev highlighted the dramatic recovery of the species. In 2005, the population had dwindled to fewer than 40,000. Thanks to a nationwide hunting ban, increased protection measures, and targeted monitoring programs, Kazakhstan has achieved one of the most notable wildlife conservation success stories in recent history.

However, the rapid rebound has brought new challenges. Ecologists warn that rising saiga densities are increasing competition with agricultural activities and contributing to pasture degradation. In response, the government has begun implementing controlled population management strategies. Between July 1 and November 30, 2025, around 196,000 saigas were culled, with carcasses processed by domestic enterprises.

“The work was carried out in strict accordance with scientific recommendations,” Nyssanbayev stated.

A separate concern is the trade in saiga derivatives, particularly male horns, which are in high demand in traditional Eastern medicine. According to the ministry, all horns are marked and securely stored by the Okhotzooprom State Enterprise. A digital traceability system, developed in partnership with Kazakhtelecom JSC, is currently being piloted to ensure full transparency in horn origin tracking. This technology, supported at the CITES International Conference, is under consideration as a mechanism for potentially easing current restrictions on derivative exports.

First Deputy Prime Minister Roman Sklyar has instructed the Ministry of Ecology and other relevant agencies to finalize regulatory frameworks for labeling and circulation of saiga products, and to develop comprehensive measures for managing the growing population in 2026.

The dramatic saiga recovery has also drawn international attention. As previously reported by The Times of Central Asia, Kazakhstan has agreed to transfer 1,500 saiga antelopes to China in 2026 to support efforts to reintroduce the species beyond its historical range in Central Asia.

02 Dec 2025

Home, Kazakhstan, Business & Economy, Kazakhstan Business & Economy, Features, Kazakhstan Featurees

How the Russian Relocation Wave Reshaped Kazakhstan’s Economy

December 4, 2025
By Times of Central Asia

In September 2022, northern Kazakhstan’s border crossings experienced huge surges as tens of thousands of Russians fled mobilization for the war in Ukraine. In Almaty and Astana, rental prices soared to historic highs, and social infrastructure came under intense pressure. At the time, the influx seemed poised to destabilize the country’s established equilibrium.

Two years on, the situation has transformed. The initial surge subsided, and spontaneous migration underwent a natural filtering process. Many who saw Kazakhstan as a temporary stop have moved on or returned to Russia. Those who made a conscious decision to stay have legalized their status and integrated into the local economy.

Despite initial fears, the mass relocation did not damage Kazakhstan’s economy. On the contrary, the so-called “Russian exodus” accelerated Almaty and Astana’s evolution into cosmopolitan urban centers, while introducing lasting economic shifts.

A New Diaspora

Understanding the impact of the mass migration requires distinguishing transient travelers from those who settled. During the peak in autumn 2022, more than 400,000 Russian citizens crossed the border, though most quickly departed Kazakhstan.

According to Kazakhstan’s Interior Ministry, from January 2023 to September 2024, more than 80,000 Russian citizens received residence permits for work. Including family members and remote workers, the core of the relocated population can be estimated at 100,000–120,000 people.

Those who remained form a skilled urban middle class, IT specialists, engineers, doctors, and entrepreneurs, largely aged 25 to 40. When the “visa run” legal loophole allowing stay extensions by briefly exiting the country was abolished in January 2023, many were forced to legalize their presence. The rule change pushed many relocants to formalize their stay through work contracts or business registration, which in turn made their economic activity more visible to the state.

By the end of 2023, the number of registered legal entities with Russian participation exceeded 18,000, a 70% increase. In 2024, that number rose to more than 23,000.

The “Cappuccino Effect”

The arrival of tens of thousands of solvent consumers brought not only capital, but also the consumption habits of Russia’s megacities. International institutions, including the IMF, have acknowledged that Kazakhstan’s 2023 GDP growth was supported in part by robust domestic demand. Spending surged in restaurants, delivery services, taxis, and gyms, especially in Almaty and Astana. This boost helped small and medium-sized businesses recover from the pandemic.

Russian entrepreneurs, opening everything from coffee shops to architecture firms, raised service standards and intensified competition. Local businesses responded by improving their quality and digitalizing operations. However, this also pushed up consumer prices, contributing to inflation and affecting local purchasing power.

Housing remains the most visible pressure point. While the panic of late 2022 has passed, rents remain well above pre-crisis levels. Analysts estimate that average house prices are still 40% higher than in 2021. This has fueled gentrification, with central Almaty’s “Golden Square” and elite areas of Astana becoming expat enclaves. Students, public sector workers, and young families have increasingly been pushed to the outskirts, increasing commuting times and straining public transport.

Many relocants are transitioning from tenants to homeowners, bolstering demand in the mid to high-end housing segments.

Labor Market and Social Integration

Fears that migrants would displace local workers have largely failed to materialize. While competition has intensified in some white-collar sectors, particularly IT, Kazakhstan has benefited overall.

The national tech park, Astana Hub, has seen dramatic growth. Relocated startups and global players, such as inDrive, Playrix, and MyTona, have boosted Kazakhstan’s IT service exports. By 2023, Kazakhstan’s IT exports had surpassed $500 million, with Astana Hub residents alone exporting over $280 million worth of services. President Kassym-Jomart Tokayev has since set a $1 billion IT export target by 2026.

In other corporate sectors, such as marketing and consulting, there is tension, with local professionals facing wage pressure from relocated workers willing to accept lower salaries. Still, this dynamic has prompted many Kazakh professionals to upskill and compete more effectively.

Socially, the integration process is mixed. Many relocants are enrolling in Kazakh language courses, viewing this not just as a practical necessity but also as a gesture of respect. Unlike earlier migration waves marked by colonial overtones, today’s arrivals tend to reject imperial narratives and express respect for local culture.

Still, complete assimilation is rare. In Almaty and Astana, many relocants operate in semi-insular “bubbles,” frequenting familiar venues and working in coworking spaces. However, these communities are not closed: business partnerships and mixed work teams are gradually blurring the lines between old and new residents.

Looking Ahead

The key question now is whether these relocants will remain if the war ends. Indicators such as school enrolments, business formation, and mortgages suggest that a significant share of relocants have put down roots.

Kazakhstan has gained an unexpected demographic and intellectual dividend. The initial shock of migration has been transformed into economic opportunity. The next challenge lies in administration, ensuring the successful integration of this new class of taxpayers without triggering social imbalance or resentment among the native population.

02 Dec 2025

Central Asia, Tajikistan Life & Culture, Home, Life & Culture, Tajikistan, Tajikistan Features, Tajikistan Home, Features

Why Tajikistan Chose the Desert Partridge as Its Symbol for 2026

December 2, 2025
By Vagit Ismailov

Tajikistan has designated the desert partridge as its “Bird of the Year 2026”, a move environmentalists say could mark a turning point in the country’s approach to protecting fragile desert ecosystems.

The National Academy of Sciences of Tajikistan concluded its annual public vote by officially selecting the desert partridge, locally known as chil or kabki zirak, as the national avian symbol for the coming year. This rare and elusive species inhabits the southern and western desert zones of the country, areas that remain among the least studied in Tajikistan’s environmental landscape.

Although no systematic population surveys exist, ornithologists agree that the desert partridge is in decline. Primary threats include habitat degradation, overgrazing, agricultural expansion, and the absence of long-term ecological monitoring. Environmental advocates hope the bird’s new status will encourage state-led conservation efforts in arid regions that have historically received little attention.

Measuring 30-35 centimeters in length and weighing up to 450 grams, the desert partridge is ideally adapted to its environment. Its sandy plumage offers effective camouflage in rocky deserts, while distinctive dark stripes on its head help distinguish it from other species. The bird rarely flies, instead relying on swift footwork to navigate between shrubs.

Its preferred habitat includes plains, foothills, and dry plateaus. One of the most resilient species in Central Asia’s deserts, the partridge can survive without access to open water, making it a model of adaptation to extreme conditions.

Scientists say the selection of the desert partridge is a conscious signal that Tajikistan must begin prioritizing the study and protection of desert ecosystems. The Bird of the Year status will facilitate comprehensive population monitoring and draw public and institutional attention to the environmental impact of climate change.

In 2025, Tajikistan named the great bustard, one of its rarest bird species, as its bird of the year. Approximately 23 nesting pairs and up to 60 individuals during migration have been documented.

Launched in 2007, the Bird of the Year program has previously featured notable species such as the eagle owl, blue magpie, white stork, Tibetan snowcock, hoopoe, peregrine falcon, swallow, golden eagle, oriole, goldfinch, turtle dove, and the beautiful bustard.

02 Dec 2025

Central Asia, Turkmenistan Home, Home, Turkmenistan, Turkmenistan Business & Economy, Business & Economy

Turkmenistan Introduces New 200 Manat Polymer Banknote

December 2, 2025
By Sadokat Jalolova

Turkmenistan has unveiled a new 200 manat polymer banknote as part of a broader upgrade to its national currency, state news agency TDH reported on December 1. The Central Bank announced that the new note, along with updated polymer versions of the 1, 5, and 10 manat denominations, has entered circulation in honor of the 30th anniversary of Turkmenistan’s recognition as a permanently neutral state. The release also coincides with the 2025 theme: the International Year of Peace and Trust.

While the 1, 5, and 10 manat notes retain their existing color schemes and general designs, each now includes the emblem of the International Year of Peace and Trust. The newly introduced 200 manat note depicts the Arkadag Monument on the front and the administrative building of the Arkadag city khyakimlik (mayor’s office) on the reverse. All updated notes bear the year of issue and the facsimile signature of the Central Bank chairperson.

The Central Bank emphasized that the new and modified banknotes must be accepted at face value by all institutions and businesses, regardless of ownership or sector. Earlier series issued in 2009, 2012, 2014, 2017, and 2020 remain valid legal tender.

To combat counterfeiting, authorities advised the public to verify at least five security features when handling cash. Detailed guidance is available on the Central Bank’s official website.

Last year, the Central Bank implemented a range of reforms aimed at improving cash quality and strengthening anti-counterfeiting controls throughout the financial system.

In a related regional development, Kyrgyzstan in March began domestic production of its national currency, the som, for the first time since gaining independence. The new Kyrgyz banknotes are printed by the Bishkek-based Open Joint Stock Company Uchkun, replacing previous reliance on European printing facilities.

02 Dec 2025

Central Asia, Home, Tajikistan International Affairs, Tajikistan, International Affairs, Tajikistan Home, Features, Tajikistan Lead Story

Tajikistan Reports New Militant Attack from Afghanistan; Chinese Citizens Killed

December 2, 2025
By Vagit Ismailov

A deadly cross-border attack has once again drawn attention to the volatile security situation along the Tajik-Afghan border. Armed militants opened fire on foreign workers in Tajikistan, prompting sharp condemnation from Dushanbe and renewed calls for Kabul to enhance control over its border regions.

According to the press center of Tajikistan’s State Committee for National Security (GKNB), the latest incident occurred on November 30 at approximately 6:45 p.m. near the village of Shodak, located in the rural village of Vishkharv, Darvaz district.

The gunfire reportedly came from the Afghan village of Ruzvayak, in the Mohi Mai district of Badakhshan province. Militants targeted employees of the China Road and Bridge Corporation, a Chinese state-owned construction company. Two Chinese nationals were killed in the attack, and two others were wounded.

This was not an isolated incident. On November 26, militants launched a similar cross-border assault in the Shamshiddin Shohin district, resulting in the deaths of three Chinese employees of the Shokhin-SM company and injuring another.

Both attacks originated from Afghanistan’s Badakhshan province, raising serious concerns among Tajik authorities about what appears to be a growing pattern of cross-border violence.

Despite ongoing efforts to enhance security, Dushanbe acknowledged continued attempts by armed criminal groups to destabilize the situation. “The Tajik side, expressing deep concern, strongly condemns these alarming actions by criminal groups and calls on the current authorities of Afghanistan to take timely and effective measures,” read a statement from the Border Troops press center.

The GKNB stated that additional measures are being implemented to strengthen border protection and ensure the safety of both Tajik citizens and foreign workers. Authorities also reported that the situation remains “stable and under control,” and that investigations are underway.

In a separate statement, the Ministry of Foreign Affairs of Tajikistan condemned the attacks as “brutal actions by terrorist groups” and urged the Afghan authorities to guarantee the security of border areas.

Official reactions followed from Kabul, Islamabad, and Tehran. Representatives of the Taliban (designated as a terrorist organization and banned in several countries) extended condolences to both Tajikistan and China. They asserted that the attacks were carried out by factions seeking to “create tension and mistrust between countries in the region,” and expressed willingness to cooperate in the investigation and information exchange.

On December 1, President Emomali Rahmon convened an emergency meeting with the heads of Tajikistan’s law enforcement and security agencies. According to the presidential press service, Rahmon “strongly condemned the illegal and provocative actions of Afghan citizens,” called for tougher preventive measures, and instructed security forces to reinforce surveillance and control along the entire border zone.