Cryptocurrency evangelist Changpeng Zhao is now serving as an advisor to the Kyrgyz government, helping the Central Asian nation implement the widespread use of blockchain technology.

Zhao, who formerly led the crypto exchange Binance.com, met with Kyrgyz President Sadyr Japarov in Bishkek on May 3 and participated the following day in the inaugural meeting of the country’s National Council for the Development of Virtual Assets and Blockchain Technologies.

Zhao, who goes by the moniker “CZ”, “expressed readiness for 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 issued by Japarov’s press service.

CZ announced in a social media post that he advised Kyrgyz officials to use Bitcoin (BTC) and Binance coin (BNB) as “the two starting crypto for the National Crypto Reserve.”

In April, Japarov signed legislation authorising the central bank to work out the details of introducing a “digital som.” Japarov stated that the national council will oversee the implementation 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 Kyrgyz president contended that the embrace of blockchain technology 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 [Bank Secrecy Act]” while heading Binance.com. 

This article first appeared on Eurasianet here.