As per the latest reports, the officials from the central bank of Uzbekistan have made an announcement in regards to unbanning cryptocurrencies for payment purposes. The central bank of Uzbekistan has stated that they will never unban cryptocurrencies in the country as a payment method.
The Central Bank of Uzbekistan’s (CBU) deputy chairman, Behzod Khamraev was the one who commented on the existence of cryptocurrencies in the country. He stated that it is highly unlikely that cryptocurrencies will ever be adopted as modes of payment in the country.
The deputy chairman at the CBU had the same views about cryptocurrencies as the rest of the regulators from around the world. According to Khamraev, cryptocurrencies have no backing or physical existence. This makes cryptocurrencies extremely unreliable and untrustworthy assets.
Therefore, the country will never adopt an asset that is backed by nothing. In order for the country and the regulators to trust the cryptocurrencies, they need to have some sort of backing.
It was during an interview with Spot.uz, a publication for local businesses in Uzbekistan where Khamraev shared his thoughts about cryptocurrencies. He revealed that ever since Bitcoin rose to fame, they have monitored its market involvement. So far, they have established that Bitcoin is highly speculative.
This very attribute makes Bitcoin and other cryptocurrencies assets that can never match fiat currencies. The fiat currencies such as the USD, JPY, EUR, or GBP have a physical value and are backed by an entire regulated system. This is something that cryptocurrencies do not lack at the moment.
Therefore, until the cryptocurrencies are able to gain such status and backing with something that physically exists, they will never be able to take the place of fiat currencies.
Khamraev stated that there is currently an enormous number of Uzbekistani soms that are currently in circulation around the world. He stated that almost 28 trillion soms are being circulated all over the world. However, soms are fully backed by the assets that are with the central bank of Uzbekistan.
The statement was given by Khamraev when the topic of El Salvador adopting Bitcoin as a legal tender was raised by the interviewer at Spot.uz. The interviewer wanted to know what Uzbekistan thinks about El Salvador’s acceptance of Bitcoin and if Uzbekistan will ever make the same move.
The confidence that Khamraev demonstrated while talking about the matter showed that he was confident that the CBU will also have backing from the government of Uzbekistan on the matter.
For now, it is highly unlikely that the government of Uzbekistan or the regulators would accept cryptocurrencies in the country.