There are several efforts onboard aiming at developing the decentralized ledger technology (DLT), blockchain and cryptocurrency industry in a Central Asian state and former Soviet republic, Uzbekistan.
Back in 2019, the government of Uzbekistan imposed a restriction on its citizens from trading and purchasing any kind of crypto asset, including Ethereum (ETH), XRP, Tether (USDT). Although cryptos were barred, the government continued to allow its people to only sell their crypto asset holdings.
Coronavirus pandemic was a game-changer
However, after realizing the potential of cryptocurrency in 2020, Uzbekistan rolled out its first cryptoasset trading exchange dubbed Uznex. This was the time when Covid-19 pandemic forced most governments to encourage citizens to seek solace in contactless payment alternatives including Bitcoin so as to reduce the spread of the virus that has so far claimed the lives of over 3,777,900 people globally. Ever since the pandemic started, Uzbekistan’s negative attitude towards digital currency started reversing. Now the country is open to the evolution of the finance and banking system and is now employing blockchain technology to change from using traditional money to using virtual money like crypto assets.
In May 2021, the Government of Uzbekistan reconsidered its position on BTC and all other cryptocurrencies. The National Project Management Agency (NAFT) released legal documents containing licensing of crypto assets – the docs seek to regulate the entire industry. In those official documents, the government allowed its people to carry out all sorts of crypto assets trading and exchanges involving cryptocurrencies in exchange for soum (UZS) and other foreign currencies. However, the Financial Authority of Uzbekistan made a stand that all crypto asset venture capitalists and users will buy, sell and invest in this nascent volatile asset at their own risk.
Increased collaboration in the cryptocurrency sector could boost Uzbekistan’s economy
Now in a move to take the fintech innovations forward, Moonstake partnered with UzNEX, a crypto exchange being operated and managed by KOBEA Group.
Through this partnership, the two parties will aim at developing DLT community programs plus conducting relevant research, training, events, and conferences to raise awareness in the banking and finance sectors hence boosting the country’s economy.
The two players will also offer blockchain consulting services including staking tech to financial and banking companies, a thing that will help the country to penetrate the high-potential markets in Southeast Asia and the Middle East.