In a bold move to become Central Asia’s financial technology hub, President Shavkat Mirziyoyev has signed a sweeping decree launching a regulatory sandbox for stablecoin payments and a $50 million venture fund. This pivotal initiative marks a key step in Uzbekistan’s “Digital Uzbekistan 2030” strategy, aiming to lure $1 billion in investments and double the number of fintech firms by 2030, signaling a transformative era for the nation’s economy.
Landmark Decree and the Regulatory Sandbox
On November 28, 2025, President Mirziyoyev signed the decree “On Measures to Further Develop the Financial Technology Sector,” enshrining a commitment to innovation in Uzbekistan’s financial landscape. Effective January 1, 2026, the regulatory sandbox will allow selected firms to experiment with blockchain-based payments and tokenized assets like shares and bonds without the immediate burden of comprehensive licensing. The initiative provides these companies with essential tax incentives for up to three years, creating a nurturing environment for emerging technologies.
However, participants are not exempt from oversight. The National Agency for Prospective Projects (NAPP) will scrutinize these firms, ensuring compliance with anti-money laundering regulations—a necessity given the risks associated with cryptocurrency operations. This controlled approach aims to bolster participant confidence while ensuring that the innovations contribute positively to Uzbekistan’s financial ecosystem.
Central Bank’s Digital Currency and Funding Push
A central part of this fintech revolution is the Central Bank of Uzbekistan’s (CBU) ambitious plans to introduce a “digital som.” This central bank digital currency (CBDC) is intended for interbank and international transactions, strategically avoiding retail circulation to circumvent inflationary pressures. Chairman Timur Ishmetov emphasized the importance of rigorous testing, saying, “We must test both avenues rigorously,” highlighting the simultaneous exploration of CBDCs and privately issued bank-backed stablecoins.
Accompanying this initiative is the establishment of a $50 million venture fund aimed at providing grants, loans, and vital mentorship to early-stage fintech startups. This funding is part of a broader strategy targeting an increase in licensed fintech firms from 103 to 200 by 2030. The ambition is clear: to shift Uzbekistan’s financial landscape from traditional frameworks to a modern, digital-first economy capable of attracting significant foreign investments.
Digital Infrastructure and Market Context
Complementary reforms further underpin this ecosystem, with plans to implement real-time bank transfers via an Instant Payment System by February 1, 2026. As mobile banking adoption flourished—experiencing a 28% increase last year—this infrastructure aims to facilitate seamless transactions among individuals and businesses. Uzbekistan’s commitment to enhancing digital payments is evident, with non-cash transactions jumping to 45% of total volume in 2024, indicating a strong shift towards a cashless society.
With the national crypto market valued at $162 million in 2025, Uzbekistan leads Central Asia in digital asset ownership, boasting 512,300 individuals holding cryptocurrencies. Moreover, the adoption of stablecoins could significantly reduce remittance costs from 7% to less than 1% on the $8.2 billion that circulates annually in remittances—an amount that accounts for about 12% of the country’s GDP. This reflects a powerful opportunity to enhance economic accessibility and efficiency.
Regional Race and Broader Economic Vision
Uzbekistan’s ambitious plans position it at the forefront of a Central Asian race towards innovative financial solutions. Notably, schemes in neighboring Kyrgyzstan and Kazakhstan are already underway, with plans for stablecoins pegged to national currencies. The competition is heating up, but Uzbekistan’s comprehensive strategy—rooted in economic reform since 2016—seeks to establish it not just as a participant, but as a leader in this regional fintech landscape.
As Uzbekistan’s GDP growth increased from 5.3% in 2017 to 6.4% in the first half of 2025, experts foresee that the fintech sector will contribute substantially to this upward trajectory. Still, challenges linger. Cyber vulnerabilities, the need for clear reserve transparency in stablecoin management, and a shortage of qualified personnel are critical hurdles that authorities will need to address. The government is committed to robust infrastructure investments to mitigate these risks while fostering a transparent and sustainable financial technology environment.
Vision for the Future: Beyond 2030
This fintech initiative embodies more than just immediate economic growth; it sets the stage for Uzbekistan to transform into a regional center for financial innovation by 2030. The government’s focus on creating a robust innovation hub aims to engage stakeholders, from startups to established corporations, in nurturing the digital finance ecosystem. Over the next several years, more than 100 startups are expected to be incubated, along with various hackathons to stimulate creativity and talent in fintech.
Ultimately, as Uzbekistan enhances its regulatory frameworks and aligns with global best practices, the vision includes establishing itself on the Global Fintech Index. The pathway is challenging, but with strategic planning, investment in human capital, and cooperative partnerships, Uzbekistan’s financial revolution could redefine the economic landscape of Central Asia and inspire similar movements globally.
