Changpeng “CZ” Zhao, the founder and former CEO of Binance, has firmly denied recent claims suggesting his involvement in a proposal to establish a private cryptocurrency-friendly bank in Kyrgyzstan. The allegations stemmed from a statement by Kyrgyzstan’s President Sadyr Japarov, who said that CZ had visited the country and proposed the creation of such a financial institution.
Japarov claimed in an interview that during CZ’s visit in May, the two discussed launching a bank that would work with cryptocurrencies. According to the president, he initially aimed to open a state-owned bank, but after CZ purportedly rejected that approach, they settled on the idea of a private entity—an agreement that allegedly led to the formation of Bereket Bank.
However, CZ took to social media to clarify his position, stating unequivocally that he had no involvement in any banking proposals in Kyrgyzstan and that he has no intention or desire to operate a bank. “I might have said something along the lines of wishing there were more digital banks that support crypto, but I never proposed or pushed for a specific project,” CZ wrote.
Despite distancing himself from the banking initiative, CZ acknowledged his ongoing advisory role with the Kyrgyz government. In April, he signed a memorandum of understanding with the country’s foreign investment authority, officially taking on an advisory position focused on blockchain and crypto regulation. Since then, he has been actively engaged in supporting the development of Kyrgyzstan’s digital finance landscape.
One notable project guided by this collaboration was the launch of a national stablecoin, pegged to the Kyrgyzstani som on a 1:1 basis. Introduced in October, the stablecoin is built on Binance’s BNB Chain, with its native token BNB set to be part of Kyrgyzstan’s crypto reserves if the initiative proceeds as planned.
CZ has also helped facilitate the integration of Binance Academy, the educational arm of Binance, with ten leading universities in Kyrgyzstan. This effort aims to support blockchain education and digital finance literacy across the country. Additionally, the Binance app is being localized to cater to the Kyrgyz market, further aligning with the government’s broader strategy to position Kyrgyzstan as a regulated hub for crypto innovation.
While the public confusion over the banking proposal highlights the complexities of international crypto collaboration, it also underscores the growing interest of smaller nations in establishing themselves as players in the global digital asset economy. Kyrgyzstan, a country with a developing financial infrastructure, is actively seeking to modernize its systems with the help of blockchain technology and expert guidance.
CZ’s involvement in Kyrgyzstan reflects a broader trend of crypto industry leaders taking on advisory roles in emerging markets. These collaborations often aim to create regulatory clarity, foster innovation, and attract foreign investment. However, they can also lead to misunderstandings when roles and responsibilities are not clearly communicated.
Given CZ’s global stature and the influence of Binance in the crypto sector, even offhand remarks can be misinterpreted as formal proposals. This incident serves as a reminder of the importance of transparency and precision in public communication, particularly when national leaders and high-profile entrepreneurs are involved.
It is also worth noting that Kyrgyzstan’s interest in digital finance is not new. The country has been gradually advancing regulatory frameworks for crypto mining and exchange operations. By working with global figures like CZ, Kyrgyz officials are signaling their intent to accelerate this progress and attract more stakeholders from the digital asset industry.
In conclusion, while CZ has denied initiating or supporting the development of a private crypto bank in Kyrgyzstan, his advisory contributions to the country’s blockchain ecosystem remain significant. His collaboration with government agencies continues to shape the country’s digital finance policies and infrastructure. The situation also illustrates how rapidly growing interest in cryptocurrencies is prompting new partnerships—and occasional miscommunications—between governments and industry leaders.