In a strategic move towards embracing cryptocurrency, Uzbekistan has sanctioned two banks to issue Mastercard cards enabling users to transact with their digital assets. The initiative is a pilot to introduce virtual cards connected to cryptocurrency wallets, ensuring seamless conversion to traditional currency.
Uzbekistan’s National Agency of Perspective Projects (NAPP), a regulator functioning under the presidential wing, has given its nod to two national banks to float cards designed for cryptocurrency transactions.
The NAPP has recently included Ravnaq Bank to partake in a pioneering initiative aimed at launching a virtual card charged with cryptocurrencies. Preceding this announcement, Kapital Bank was already on board for the project, as conveyed by the Russian cryptocurrency news source, Bits.media.
NAPP highlighted that this endeavor would birth a novel banking card titled “Crypto Card – Uznex”. The unique feature of this card lies in its capacity for “swift replenishment via the immediate sale of crypto assets housed in a cryptocurrency wallet on an allied crypto exchange,” ensuring fluidity in transactional operations, as elucidated by the regulatory body.
Uzbekistan’s administration has proactively framed regulations for its budding cryptocurrency domain. As of 2022’s end, under President Shavkat Mirziyoyev’s supervision, NAPP authorized rules regarding the issuance and flow of digital assets.
This progressive attitude extended to legitimizing crypto trading platforms. Five such exchanges, including the government-managed Uznex, are operational in Uzbekistan. Concurrently, to maintain local control, the state has limited access to overseas platforms offering similar services.
While the nation’s legal framework doesn’t acknowledge cryptocurrencies as a conventional transactional medium, the upcoming Mastercard cards, set to launch in December, will bridge this gap, allowing citizens to transact with digital assets.
From January 1, 2023, Uzbeks, individuals and corporate entities, can deal in cryptocurrencies, albeit restricted to locally-regulated platforms. Adding to the nation’s crypto milestones, June witnessed the grant of its inaugural crypto depository license to Lockton Solution, a UAE-based brokerage subsidiary.