CZ Denies Role in Kyrgyzstan’s Crypto Bank Proposal

Binance co-founder Changpeng “CZ” Zhao has dismissed recent claims that he was the driving force behind a proposal to establish a crypto-friendly private bank in Kyrgyzstan, despite his ongoing advisory role in the country’s fintech and blockchain initiatives.

The rumors gained traction after Kyrgyzstan’s President Sadyr Japarov told local news outlet Kabar on Sunday that CZ had visited the country in May and suggested collaborating on a private bank that would facilitate cryptocurrency transactions. 

According to Japarov, the two discussed the idea of launching a state-owned institution, but after CZ reportedly opposed that plan, they “agreed to open a private bank,” later named Bereket Bank.

CZ Pushes Back Against Kyrgyz President’s Claims

CZ swiftly responded to the reports, calling them inaccurate. In a post on X on Monday, the former Binance CEO clarified that he never proposed creating a bank in Kyrgyzstan and has no personal interest in running one.

“This isn’t correct,” Zhao wrote. “Not quite FUD level, but still wrong. I never proposed creating a bank myself. While I support banks working with crypto generally, I have no interest in running one. I don’t recognize the name mentioned below. It’s not something I proposed.”

He added that his only comment on the matter might have been a general expression of support for more digital banks that can work with crypto, not a proposal to establish one himself.

Ongoing Advisory Role in Kyrgyzstan’s Crypto Initiatives

While denying involvement in the private bank’s creation, CZ acknowledged that he continues to advise the Kyrgyz government on blockchain regulation and crypto policy. In April, he signed a memorandum of understanding (MoU) with the country’s foreign investment agency, formalizing his role as an advisor on digital asset infrastructure and technology.

Since taking on that role, CZ has participated in several crypto-related initiatives in Kyrgyzstan. In October, the country launched a stablecoin pegged 1:1 to the Kyrgyzstani som, which runs on BNB Chain, Binance’s proprietary blockchain. Zhao also announced that BNB, Binance’s native token, could be included in the country’s official crypto reserves if the initiative moves forward.

Additionally, Binance Academy, the company’s educational branch, is being integrated with 10 of Kyrgyzstan’s leading universities, helping to promote blockchain literacy and localize Binance’s platform for the country’s growing crypto user base.

Despite the latest controversy, CZ remains a key figure in shaping Kyrgyzstan’s evolving digital economy, but maintains he has no intention of becoming a banker.