Uzbekistan Launches Regulatory Sandbox for Fiat-Backed Stablecoins
Uzbekistan has introduced a dedicated legal «sandbox» to regulate the issuance and circulation of stablecoins.
This framework, approved jointly by the Central Bank of Uzbekistan and the National Agency of Prospective Projects, is designed to modernise the country’s financial landscape. The primary objective is to cultivate innovative payment systems and attract international investors while ensuring a high level of protection for those participating in the digital asset market.
Within this controlled environment, entities are permitted to issue digital tokens backed by either the national soum or foreign currencies. These stablecoins can be utilised as a valid means of payment for domestic transactions as well as for facilitating international transfers and settlements. This dual-use approach is intended to streamline financial operations both within the republic and across borders.
Despite the push for innovation, the authorities have set clear limits to prevent market instability. The new regulations strictly prohibit the use of algorithmic and anonymous tokens along with any assets backed by other cryptocurrencies. These measures are specifically aimed at reducing financial risks and preventing the potential misuse of digital assets for illicit activities.
To guarantee the security of the tokens, any issuance must be supported by 100% fiat reserves. These funds must be held in a separate account within the Central Bank to ensure they remain liquid and accessible at all times. Additionally, all participants in the sandbox are required to follow rigorous cybersecurity and data protection standards to safeguard the integrity of the nation’s financial network.
