Uzbekistan is drafting legislation to legitimize cryptocurrency transactions by September 1, local media reported.
The President Shavkat Mirziyoyev has issued a decree for this purpose and the country’s central bank, the ministries of finance, communication and information technology, and economy are entrusted with the task, along with several other ministries and departments.
The central Asian country’s government also plans to establish a center of excellence in the blockchain technology, which underlies cryptocurrencies such as the Bitcoin. The center is expected to commence operations on June 1 at the Mirzo Ulugbek Innvoation Center.
Earlier, the Uzbek central bank had criticized cryptocurrencies, saying that they are not regulated and are used to fund terrorism and criminal activities.
The Uzbek government is also planning to promote the use of contact-less payment technologies, including Paypal, Alipay, Visa and Mastercard. The President is expected to announce related guidelines by June 1.
Uzbekistan is among the top countries where cryptocurrencies can be mined cheaply.