Central Bank of Uzbekistan explores launch of digital som and stablecoin pilot project

Tashkent, Uzbekistan (UzDaily.com) — The Central Bank of Uzbekistan is exploring the possibility of issuing its own digital currency—the digital som—as well as stablecoins, Central Bank Chairman Timur Ishmetov announced at a press conference on 11 September.

According to Ishmetov, the regulator is considering two directions: a central bank digital currency and stablecoins issued by commercial banks and backed by a fixed value.

“We are currently reviewing both options… We proposed to the president to start a pilot project for the use of stablecoins. We want to explore all possibilities,” Ishmetov said. He also emphasized that international experience, particularly the U.S. Federal Reserve’s decision not to issue a digital dollar, highlights potential risks related to backing digital currencies with reserves. “It is crucial to strictly control backing with money and reserves; otherwise, it would effectively mean issuing additional money,” the Central Bank head explained.

Within the pilot project, stablecoins will be tested as a payment instrument in a regulatory sandbox in collaboration with the National Agency for Advanced Projects. Based on the testing results, the regulator will assess public demand for digital currencies. Ishmetov noted that in countries with well-developed payment systems, public interest in additional payment instruments is usually low, so an initial experiment will help evaluate practical outcomes.

The Central Bank chairman also stressed the importance of studying the issuance of a digital som, which could be used for retail payments, transactions between the central bank and commercial banks, as well as for international transfers. “We want to explore all options and test them,” Ishmetov concluded.