Uzbekistan to expand the Central Bank’s mandate to include development of financial technologies

Under a presidential decree adopted on November 27, the Central Bank has been designated as the main authority responsible for promoting fintech development in Uzbekistan.

According to the document, the Central Bank will be tasked with supporting innovation while ensuring alignment with key macroeconomic priorities – the stability of the banking system, uninterrupted operation of payment systems, and price stability.

The regulator will also act as one of the main drivers of technological transformation in the financial sector and contribute to creating an effective competitive environment for all market participants.

Particular emphasis is placed on applying regulatory measures when introducing fintech solutions. These measures should create conditions for technological innovation while reducing the risks associated with them.

In addition, the Central Bank will make decisions based on complete and reliable data, ensure the protection of citizens’ rights in the provision of fintech services, and support startup projects operating within the fintech ecosystem.

The regulator is expected to facilitate innovation while maintaining a balance between fintech development and priorities related to banking stability, payment-system reliability, and price stability. It will also be responsible for forming a competitive landscape in the financial sector and ensuring that citizens’ rights are protected as fintech services grow.

The Central Bank will receive new regulatory powers related to the introduction and development of financial technologies, the protection of consumer rights in the fintech market, and the support of startups.

These responsibilities will also be incorporated into the Law on the Central Bank. The decree establishes a national commission for the development of the fintech sector, chaired by Central Bank Governor Timur Ishmetov.

The commission’s tasks include:

• Defining strategic directions for the development of the fintech sector
• Discussing sector challenges and proposing measures to address them
• Coordinating activities among government bodies, financial institutions, and the private sector
• Preparing legislative proposals on broad adoption of financial services that successfully pass the Central Bank’s regulatory sandbox
• Identifying barriers to fintech development, including bank and payment-organization tariffs, and taking measures to optimize them

The regulator has also been instructed to develop a fintech development strategy for 2026–2030 with the involvement of foreign consultants.

The Central Bank will be responsible for introducing and regulating the issuance and circulation of tokenized shares and bonds, including adopting the relevant procedures and ensuring cybersecurity compliance of the associated information systems.

By April, a roadmap for a pilot project on using the Central Bank’s digital currency as a payment instrument is expected to be approved. By February, a special legal framework will be introduced to ensure the stable circulation of tokens used as payment instruments.

By April, the Central Bank is also expected to prepare an IT strategy for the digitalization of its internal operations. By May, requirements for the regulatory sandbox will be simplified and new technological and thematic sandboxes will be created to support the implementation of innovations by startups and tech companies.

The decree also calls for the creation of a USD 50 million venture fund and an innovation center under the Central Bank. The fund will be transferred to a foreign company for trust management by July 1.

In December, the Central Bank will launch a pilot project to introduce unified QR code payment standards.