Uzbekistan Approves Stablecoins for Payments Under New Regulatory Framework

Uzbekistan is preparing to introduce stablecoins as an official method of payment starting January 1, 2026, within a newly devised regulatory sandbox aimed at encouraging tokenized securities trading.

Local sources, including a recent report by Kun, reveal that the regulatory framework for stablecoins will be officially enacted on January 1, 2026. The legislation, signed recently, establishes a sandbox governed by the National Agency for Perspective Projects in conjunction with the central bank.

Pilot initiatives are expected to commence focusing on a stablecoin payment system powered by distributed ledger technology. Beginning next year, local organizations will have the opportunity to issue tokenized shares and bonds, with a dedicated trading platform set up within licensed stock exchanges for these offerings.

The announcement follows Timur Ishmetov, the Chairman of Uzbekistan’s Central Bank, who disclosed in September that investigations into digital currencies were in progress. He emphasized that cryptocurrency activities need stringent oversight due to their potential significant impacts on monetary policy.

CBDCs Also Under Discussion

Ishmetov also brought up central bank digital currencies (CBDCs), clarifying that these would not be used in everyday transactions but rather to enhance settlements between banking entities.

Kashkadarya Regional branch of the Central Bank of Uzbekistan. Source: Source: Wikimedia

In March 2024, Uzbekistan’s National Agency for Prospective Projects issued a directive to increase fees for crypto operations, nearly doubling the monthly charges for crypto exchanges to approximately $20,015.

Central Asia Moves Ahead

As various countries around the world adopt crypto regulations, Central Asia is also making strides. In late October, Kyrgyzstan launched a new stablecoin pegged 1:1 to its currency, with plans to develop a central bank digital currency and assess a digital asset reserve.

In contrast, Kazakhstan has taken the lead. Reports from October detail how Kazakhstan’s Financial Monitoring Agency shut down 130 crypto exchanges linked to money laundering this year. Earlier, the nation continued to enforce its dual-track strategy on digital assets, testing a CBDC while simultaneously supporting a stablecoin model.

This comes after the Kazakhstan central bank initiated a stablecoin pilot in late September. The country also formed a state-backed crypto reserve earlier in the month in cooperation with Binance, incorporating BNB.