Uzbekistan greenlights stablecoins for payments under new sandbox regime

Uzbekistan is moving to bring stablecoins into its formal payment system, starting with a tightly controlled developmental sandbox, according to local media.

According to a Friday report by local news outlet Kun, Uzbekistan’s new stablecoin regulatory framework will come into force on Jan. 1, 2026. The new law, signed on Thursday, establishes a regulatory sandbox under the purview of the National Agency for Perspective Projects, together with the central bank.

Pilot projects are expected to be implemented to develop a stablecoin-based payment system operating on distributed ledger technology. Starting next year, Uzbekistan-based entities will be allowed to issue tokenized shares and bonds, and a separate trading platform will be created on licensed stock exchanges for these assets.

The news follows Uzbekistan’s central bank Chairman Timur Ishmetov announcing in September that studies on digital currencies were underway. At the time, he said crypto activities “should be done under strict control, as it will have a serious impact on monetary policy.”

Related: Crypto on horseback: Journey into Kyrgyzstan’s gold-pegged digital future

CBDCs also on the table

Ishmetov also mentioned central bank digital currencies (CBDCs), but not in their retail form. He said that “such a currency would not be used in people’s daily lives, but mainly to speed up settlements between commercial or central banks.

Uzbekistan’s National Agency for Prospective Projects issued a directive in late March 2024 to increase monthly fees for crypto market participants in the country. Under the new system, crypto exchanges face a monthly fee equivalent to $20,015 — about double the previous fee.

Related: Kyrgyzstan introduces state crypto reserve concept in new bill

Central Asia not left being left behind

As much of the world develops crypto regulatory frameworks, Central Asia has also progressed. In late October, Kyrgyzstan rolled out a new stablecoin pegged 1:1 to the Kyrgyzstani som, while confirming plans to issue a central bank digital currency and explore a digital asset reserve.

Still, Kazakhstan clearly leads the pack. According to October reports, Kazakhstan’s Financial Monitoring Agency took down 130 crypto platforms involved in money laundering schemes this year. Earlier that month, the country continued implementing its dual-track approach to digital assets, piloting a CBDC while also backing a state-linked stablecoin.

This followed the launch of the Kazakhstan central bank’s stablecoin pilot project in late September. Also in September, the country established a state-backed crypto reserve in partnership with Binance, holding BNB (BNB).

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