The Central Bank of Uzbekistan plans to connect market participants to the digital sum system and fully launch it by the end of 2029, according to a report by AN Podrobno.uz from Tashkent. The regulator intends to first study the advantages of the new currency and conduct pilot testing.
As Daryo.uz writes, this refers to a wholesale central bank digital currency (wholesale CBDC), which will be intended not for everyday payments by citizens, but for operations of banks and payment organizations. It is planned to be created on the basis of distributed ledger technology.
By the end of 2027, the regulator intends to study the advantages and feasibility of issuing the digital sum. In 2028, pilot tests are planned, and by the end of 2029, market participants are to be connected and the system fully launched. At the same time, the Central Bank emphasized that a final decision on the introduction of the digital currency has not yet been made. After the system is developed jointly with international consultants and pilot tests are conducted, a decision on its further launch will be made.
One of the first areas of use for the digital sum could be government procurement. This will allow tracking allocated funds and reducing the risk of their misuse. The digital currency is also being considered for financing infrastructure projects. Payments to contractors could be made after certain stages of work are completed and confirmed, which will allow real-time tracking of the spending of state investment funds. In addition, the digital sum could be used for government payments and financing of targeted subsidies.
The Central Bank noted that a wholesale digital currency could reduce settlement risks, increase operational resilience, and enable automatic emergency liquidity provision on a 24/7 basis. According to the regulator, 143 central banks worldwide are currently studying digital currencies. Of these, 77 are in the development stage, and another 41 are implementing pilot projects. Only three countries have launched full-fledged central bank digital currencies so far — the Bahamas, Nigeria, and Jamaica. The Central Bank emphasized that the development and study of a digital currency takes several years, so the outlined timelines are still plans, not a guarantee of launch.
Source: podrobno.uz