Bitcoin will not become legal tender in Uzbekistan, insists central bank official – Bitcoin News

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Cryptocurrency cannot be adopted as a form of payment in Uzbekistan, a senior central bank official said recently. Speaking to local media, the regulator’s representative also noted that unlike cryptocurrencies, the national fiat is backed by the bank’s assets. The statement comes despite Tashkent’s crypto-friendly moves in the past.

Cryptocurrency Cannot Be Accepted For Payments In Uzbekistan, Monetary Authority Says

Cryptocurrencies such as bitcoin cannot be recognized as legal tender in Uzbekistan and that is unlikely to change, a central bank official told Spot this week. Speaking to local media, Central Bank of the Republic of Uzbekistan (CBU) Vice President Behzod Hamraev said:

As an economist, I can assume that he [cryptocurrency] will never be equal to world currencies such as dollar, euro, yen, ruble.

The representative of the monetary authority pointed out that 28 trillion Uzbek sum (the nation’s fiat currency) is currently in circulation and that they are all backed by central bank assets. “You can even see an inscription of the regulator’s bonds on the banknotes, and the cryptocurrency is not backed by anything,” he added.

The government of Uzbekistan incorporated a ban on the use of cryptocurrency for payments into its legislation in 2019. Under current law, the sum remains the only legal tender in the Central Asian country. A decree from the National Agency for Project Management, a regulatory body responsible for monitoring the digital economy, underlined:

Crypto assets cannot be used in the territory of the Republic of Uzbekistan as a means of payment.

At the same time, the decree also introduced regulations governing the licensing and operation of cryptocurrency exchanges. Crypto trading was legalized in 2018, but in December 2019, authorities effectively prohibited residents from buying cryptocurrencies on trading platforms while they were allowed to sell their crypto holdings.

Then, in January 2020, Tashkent announced its intention to create a national mining pool as a priority, establish a licensed cryptocurrency exchange where miners will be allowed to sell their digital coins, create a blockchain valley and build a blockchain valley. ” introduce crypto tax exemptions. The regulated digital asset platform Uznex, operated by South Korean entity Kobea Group, launched later that same month.

The latest statement from the Central Bank of Uzbekistan regarding the status of cryptocurrencies comes after El Salvador became the first country to adopt bitcoin (BTC) as legal tender alongside the US dollar. It also follows a similar statement from Dmitry Peskov, spokesman for Russian President Vladimir Putin, who recently said Russia was not ready to accept the coin as a form of payment.

Do you think Uzbekistan will change its policy towards cryptocurrencies in the future? Share your expectations in the comments section below.

Tags in this story Assets, Bitcoin, CBU, Central Bank, Crypto, crypto mining, Cryptocurrencies, Cryptocurrency, Vice President, Digital Assets, Exchange, legal tender, legalization, Legislation, means of payment, Official, Payments, Position, Settlement, Regulations, Rules, Declaration, Trade, Uzbekistan

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