Cryptocurrency is way out of reach in the country and is far from adopting. Bitcoin is not becoming a legal tender in Uzbekistan, a high ranking official said recently. The speaker also told the press that the bank’s assets back the national fiat. The statement is itself contradictory since we have seen Tashkent’s crypto-forward moves before.
Its final Bitcoin(BTC) is not becoming legal tender or any other crypto.
Unfortunately, BTC cannot be upheld as legal tender in Uzbekistan. Deputy Chairman of the Central Bank of the Republic of Uzbekistan Behzod Hamraev, says that crypto can never be equal to world currencies. They are way different from dollar, euro, yen, or ruble.
The representative of the finance authority points out that 28 trillion Uzbekistan’s fiat money is currently under circulation. And the benefit here is the central bank’s assets are backing all of them. He also points out that cryptocurrency, on the other hand, has no backing by anything. That’s pretty shocking, and that’s one of the reasons why BTC is far from adopting.
There has been a rollercoaster of decisions taking place in the country. In 2018, crypto trading was legal in the country. But in December 2019, Tashkent’s Government proposed a ban on the use of cryptocurrency for payment. And the recent laws says that the sum remains the only legal tender in the Central Asian country. And the decree precisely mentions that crypto-assets should remain out of reach on the territory of the Republic of Uzbekistan in any form of payment. Although the citizens cannot buy anything from crypto, they could sell their crypto holdings easily.
More about Tashkent’s further decisions
In January 2020, however, Tashkent announced that they were planning to set up a national mining pool. There will be a licensed Crypto exchange, Uznex, in the mining pool where miners can sell their digital coins. They can also create different blockchain valleys and further introduce cryptocurrency tax exemptions as well. Uznex operates from South Korea and regulates a digital asset platform launched by Kobea Group in the same month.
We all know by now how El Salvador is using cryptocurrency as means of payment in the country. The Republic of Uzbekistan started stating that they cannot adopt crypto soon after El Salvador bought the dip. Tashkent cannot believe how crypto and the U.S dollar are legal tenders at the same time in El Salvador. Additionally, Russia also says that they are not ready to accept cryptocurrency as a legal payment option. This sudden change in attitude towards crypto is not understandable to me.
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