Uzbekistan has no options to simplicity crypto payments ban, says official

The Republic of Uzbekistan will by no means adopt cryptocurrencies like Bitcoin (BTC) as a payment approach, in accordance to a central bank official.

Behzod Khamraev, deputy chairman of the Central Lender of Uzbekistan (CBU), predicted that area authorities will hardly ever allow residents to use Bitcoin as payment, alleging that BTC is backed by practically nothing.

In an job interview with area organization publication Spot.uz, Khamraev argued that Bitcoin is commonly considered “speculative” and will under no circumstances develop into equal to fiat currencies like the United States greenback, the euro, the Japanese yen or the Russian ruble.

The official pointed out that there are about 28 trillion Uzbekistani soms in circulation, and all of people are backed by the central bank’s belongings.

“One can even see an inscription about the regulator’s obligations on the banknotes, although cryptocurrency is not backed by anything,” Khamraev extra. The official’s remarks came quickly soon after El Salvador grew to become the 1st country in the world to adopt Bitcoin as legal tender along with the U.S. greenback on Sept. 7.

Uzbekistan formally banned its residents from generating payments in cryptocurrencies like Bitcoin in late 2019 as portion of an get of the director of the Countrywide Agency for Project Administration (NAPM) under the president of the Republic of Uzbekistan. “Crypto property can’t be applied as a approach of sending or receiving payments on the territory of the Republic of Uzbekistan,” the buy said.

Related: Extra countries to adhere to El Salvador’s Bitcoin move, Cardano creator suggests

In April 2021, the NAPM proposed to legalize cryptocurrency buying and selling in Uzbekistan to enable residents to exchange crypto property from national and overseas currencies. The authority previously banned its citizens from purchasing cryptocurrencies in late 2019.

The CBU and the NAPM did not quickly answer to Cointelegraph’s request for remark.