Cashless Society: Kyrgyzstan Mandates All Businesses To No Longer Accept Cash Payments, Can Only Use Card Or QR Codes
"Every payment is a recorded operation that can be analyzed and included in official reporting - more and more money is coming out of the shadows and becoming part of the formal economy," says a report.
The small Central Asian nation of Kyrgyzstan has made the controversial decision to force businesses to go completely cashless, allowing them to only use card or QR code payments, per a plan laid out by the country’s central bank.
Translated from Russian to English, Fergana.News reports (emphasis mine):
The Kyrgyz government has decided to oblige stores to accept payments only through bank cards or electronic wallets. However, the new procedure will come into force after a transition period of several months, reports 24.kg with reference to the resolution of the Cabinet of Ministers of the Republic on tax administration reform.
[The] document spells out the mandatory transition to a non-cash form of payment. It is noted that the innovation will affect all city trade and service enterprises. In this connection, owners of shops, restaurants and similar establishments will have to install [Point-of-Sale] POS terminals or connect to online payment systems.
As stated in the government decree, this decision is part of the policy on income transparency and the fight against the shadow economy. At the same time, all transactions will be recorded in electronic systems, officials specify.
Although there is an exception, it is made for enterprises operating in rural areas and hard-to-reach areas where the digital infrastructure is not yet sufficiently developed. Here, cash payments will remain acceptable for some time.
According to the country’s authorities, the transition to a non-cash payment system for goods and services will allow the state to quickly monitor financial flows, which in turn will bring Kyrgyzstan closer to “a civilized model of tax control.”
Responsibility for the implementation of government regulations is assigned to the Tax Service and the National Bank of the Republic.
Also it became known, that some changes to the Tax Code have already entered into force. For example, now penalties and fines will be accrued automatically, without the participation of a fiscal authority inspector. The amount of penalties will be equal to the statute of limitations for the tax debt itself.
In addition, cash is excluded in appropriate calculations. That is, taxes can only be paid non-cash, including using digital soms (KGS) or through the Unified Tax Account. Thus, the republican authorities intend to fully automate the tax control process over time.
At the end of October this year, President of Kyrgyzstan Sadyr Zhaparov signed a law amending the Labor Code, according to which all employers were required to pay salaries to employees only in non-cash form.
Moreover, last month local outlet Akchabar revealed some more details, noting that this move builds off of previously passed laws that wave additional fees from transacting KGS digitally that caused citizens to transact electronically less than they would otherwise, so the report says. Now QR codes via smartphone are primed to become the leading form of payment method.
The paper wrote:
The main driver of this digital revolution was the decision by the National Bank of the Kyrgyz Republic, which came into effect on November 25, 2024: to abolish fees for transfers in KGS between individuals within the country — both between accounts of the same bank and between different banks. This rule applies to all transactions made through internet and mobile applications.
Previously, banks charged a fee of 5 to 20 KGS per thousand, and up to 100 KGS for larger amounts. Now, there is no need to pay anything extra. Practice has shown that this fee often discouraged people from switching to cashless payments, especially for small transfers.
With the removal of fees, everything changed. Kyrgyz citizens began withdrawing cash from their cards less frequently. In the first three months of 2025, 177.5 billion KGS were withdrawn — almost 30% (or 71.7 billion KGS) less than during the same period last year. The number of cash withdrawal transactions dropped by 26.3%, totaling 16 million operations.
According to statistics, QR codes have become one of the most popular methods of cashless payment. As of May 1, according to the regulator, 87 million payments totaling 146.1 billion KGS were made using QR codes. Compared to the same period in 2024, this represents a 13.5-fold increase in the number of transactions and a 22.8-fold increase in the total amount.
Particularly impressive is the growth of cashless payments to the government — 13.7 million transactions totaling 4.1 billion KGS. This is 371 times more in terms of quantity and 36.7 times more in value compared to a year earlier. In other words, not only shops and cafes have switched to cashless payments — government services have also become more accessible and transparent.
This growth became possible thanks to the systematic efforts of the National Bank to implement QR codes. Today, almost all commercial banks (except for EcoIslamicBank) and 12 payment organizations offer QR-based transfer and payment services. As of May 1, 71.6 thousand QR codes have been installed in trade and service enterprises across the country — nearly 4 thousand of them appeared just in the last month. And it’s not just the capital — active installation is also taking place in the regions. For comparison, there are only 2,560 ATMs and 44,317 POS terminals installed nationwide.
Thus, QR is the most widespread method of cashless payment in Kyrgyzstan.
Moreover, previously, to pay for a purchase via QR code, one had to hope that the bank was “compatible” with the store’s system — otherwise, errors or fees could occur. Now, such problems no longer exist; QR payments are processed smoothly between any banks without interruptions.
In the first three months of the year, Kyrgyzstanis have already made 24 million such payments — four times more than during the same period last year. The total amount of transfers increased to 21.6 billion KGS. The number of transfers between clients of different banks rose sharply — from 916 thousand to 45.6 million transactions. This is an increase of almost 49 times, an absolute record. Even transfers within the same bank via QR grew from 4 million to 15 million — nearly fourfold.
Interestingly, the removal of fees turned out to be beneficial for everyone. First and foremost — for citizens, who no longer have to pay for online transfers. Businesses also gained, as the introduction of QR codes allowed them to expand their customer base and simplify payment acceptance. Even banks came out ahead — despite the elimination of fees for transfers between individuals, they increased their profits. In the first quarter of 2025, banks earned over 5 billion KGS from other types of fees — nearly a billion more than last year.
And finally, the state also benefits. It gains access to a vast number of transparent transactions. Every digital payment is a recorded operation that can be analyzed and included in official reporting. This means that more and more money is coming out of the shadows and becoming part of the formal economy.
AUTHOR COMMENTARY
The cat’s out of the bag (again): it’s not about ease and convenience, it is a systematic plan by the country’s central bank, and ALL central banks, to monitor all transactions that are made and make us digital slaves to them; and anything done under the table is seen as illegal and operating in the “shadows” and the black market economy.
Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender.
This is the same logic behind Keir Starmer’s “Britcard,” the claim being their digital ID in order to work and own a business is to combat illegal immigration and illegal labor - thus, a legal citizen can become illegal overnight for not complying.
Though the articles did not explicitly mention it, this reveals what we have been discussing and warning about for years: the on-ramp to full-blown tokenization, digital IDs and social credit scores.
It’s another step closer to the ‘final solution.’
Revelation 13:16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads: [17] And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. [18] Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.
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On one of his missionary journeys, the apostle Paul visited Athens, Greece, where he said he witnessed “the city wholly given to idolatry,” and who were “too superstitious” and worshipped a plurality of gods and deities, though the people acknowledged that there was still one God above all that was a mystery to them. When questioned by the philosophers …
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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sounds like the abolition of private property
So I guess the barter system isn't proper anymore?! they just have to know every penny ya spend and every penny ya get for selling anything. If ya sell a widget to your neighbor, you'll need a POS machine?? Must be formal you know!
Don't think those folks have a choice, do they?!