Uzbekistan Establishes Legal Framework for Stablecoin Pilot Program

The National Agency for Prospective Projects of Uzbekistan, in collaboration with the Central Bank, has approved a new regulation establishing a special legal regime for the circulation of stablecoins. This framework creates a controlled environment for pilot projects involving digital assets pegged to fiat currency.

The primary goals of the initiative are to foster the development of payment systems based on distributed ledger technology (DLT), facilitate the issuance and use of stablecoins in payment operations, attract investment, enhance competition in the financial market, and protect user and investor rights. The pilot is also intended to inform future legislative improvements.

Under this experimental regime, projects can issue stablecoins backed by national or foreign currency. These tokens can be used as a means of payment within Uzbekistan and in international settlements. The framework also permits the creation of payment systems utilizing distributed technologies.

However, the regulation imposes strict limitations on certain types of assets. It explicitly prohibits the issuance of algorithmic stablecoins, privacy-focused tokens (those with anonymity functions), and any digital assets backed by other cryptocurrencies.

A core requirement mandates that all issued stablecoins must be fully backed by cash reserves in either national or foreign currency. These funds must be held in a separate account at the Central Bank, providing an additional layer of financial stability and security for token holders.

The document enforces rigorous information and cybersecurity standards. Participants in the pilot program are required to implement robust data protection systems, appoint responsible specialists, approve internal regulations, and ensure reliable operation of their digital asset infrastructure.

Registration for participation is managed by the National Agency for Prospective Projects. Critical operational parameters—including financial stability assessments, cybersecurity requirements, and planned token issuance volumes—must be approved by Uzbekistan's Central Bank.

The initial duration for each pilot project is set at 12 months, with an option for extension. However, no project may exceed a total period of three years under this special regime. All registered participants will be listed in a public registry maintained by the authorized agency.