Bitcoin Will Not Turn out to be Authorized Tender in Uzbekistan, Central Financial institution Official Insists – Regulation Bitcoin Information


Cryptocurrency can’t be adopted as a way of cost in Uzbekistan, a high-ranking official from the nation’s central financial institution has lately said. Talking to native media, the regulator’s consultant additionally famous that not like cryptocurrencies, the nationwide fiat is backed by the financial institution’s property. The assertion comes despite Tashkent’s crypto-friendly strikes up to now.

Cryptocurrency Can not Be Accepted for Funds in Uzbekistan, Financial Authority Says

Cryptocurrencies akin to bitcoin can’t be acknowledged as authorized tender in Uzbekistan and that’s unlikely to ever change, a central financial institution official told Spot this week. Talking to the native information outlet, the Deputy Chairman of the Central Financial institution of the Republic of Uzbekistan (CBU) Behzod Hamraev stated:

As an economist, I can assume that it [cryptocurrency] won’t ever be equal to world currencies such because the greenback, euro, yen, ruble.

The consultant of the financial authority identified that 28 trillion Uzbekistani sum (the nation’s fiat cash) are presently in circulation and they’re all backed by the central financial institution’s property. “You possibly can even see an inscription of the regulator’s obligations on the banknotes, and cryptocurrency just isn’t backed by something,” he added.

Bitcoin Will Not Become Legal Tender in Uzbekistan, Central Bank Official Insists

The federal government of Uzbekistan integrated a ban on using cryptocurrency for funds into its laws again in 2019. In keeping with present regulation, the sum stays the one authorized tender within the Central Asian nation. A decree issued by the Nationwide Company for Venture Administration, a regulatory physique chargeable for the oversight of the digital economic system, emphasised:

Crypto property can’t be used on the territory of the Republic of Uzbekistan as a way of cost.

On the identical time, the decree additionally launched laws governing the licensing and operation of cryptocurrency exchanges. Crypto buying and selling was legalized in 2018 however in December 2019, authorities successfully banned residents from buying cryptocurrencies on the buying and selling platforms whereas they had been allowed to promote their crypto holdings.

Then, in January 2020, Tashkent announced it deliberate to arrange a nationwide mining pool as a precedence, set up a licensed cryptocurrency change the place miners shall be permitted to promote their digital cash, create a blockchain valley and introduce crypto tax exemptions. The regulated digital asset platform, Uznex, operated by the South Korean entity Kobea Group, was launched later the identical month.

The most recent assertion from the Central Financial institution of Uzbekistan relating to the standing of cryptocurrencies comes after El Salvador turned the primary nation to adopt bitcoin (BTC) as authorized tender alongside the U.S. greenback. It additionally follows the same statement by Dmitry Peskov, spokesman of Russian president Vladimir Putin, who lately stated Russia isn’t prepared to just accept the coin as a way of cost.

Do you assume Uzbekistan will change its insurance policies in the direction of cryptocurrencies sooner or later? Share your expectations within the feedback part under.

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