Uzbekistan's presidential decree declares Bitcoin legal and will vigorously develop cryptocurrency mining

Uzbekistan is on the path to legalizing Bitcoin. According to a presidential decree, the law on "electronic money" should be developed by the end of the summer. The Central Asian country also plans to open a center for distributed ledger technologies. Mining fees in Uzbekistan are among the lowest in the world, as the country is a major electricity producer.

Uzbekistan Adopts Bitcoin Bill

A new decree signed by President Shavkat Mirziyoyev stipulates that Uzbek institutions should complete a draft law to legally regulate cryptocurrencies, also known as “electronic money”, by September 1. Vzglyad reports that the Central Bank, the Ministry of Information Technology and Communications, the Ministry of Finance, and the Ministry of Economy will be responsible for drafting the bill.

Mirziyoyev also ordered the establishment of a specialized center for distributed ledger technology at the Mirzo Ulugbek Innovation Center. Its main responsibility will be to "create conditions for opportunities to use blockchain." The new department will work on "improving qualifications" and supporting local developers in mastering DLT technologies. The center is set to open on June 1, 2018.

The president also called for the active development and promotion of contactless payments by expanding the use of international payment systems. A complex series of measures will be introduced in June to achieve this goal.

Changing the Heart of Central Asia  

The presidential decree represents a positive change in the country’s support for cryptocurrencies such as Bitcoin. Earlier remarks by Tashkent officials indicated a different attitude. Representatives of the Central Bank of the Republic of Uzbekistan called digital coins “terrorist financing tools.” Recently, Prime Minister Abdulla Aripov supported the use of blockchain technology, Sputink reported.

Aripov participated in the "Digital Agenda in the Age of Globalization" forum in Kazakhstan's financial capital Almaty, which convenes officials from the Commonwealth of Independent States (CIS) and the Eurasian Economic Commission (EEC). His country's Central Asian neighbors have also taken positive steps toward the crypto sector. Kyrgyzstan has announced its intention to use cryptocurrencies in public contracts. Kazakhstan wants to establish a new cryptocurrency backed by assets. The Central Bank of Astana said it has no intention of banning digital currencies.

Uzbekistan has another important advantage that could increase the country’s standing in the crypto world. It ranked third in a recent study of cryptocurrency mining costs. It costs just $1,790 to produce one Bitcoin. Uzbekistan is actually the largest producer of electricity in the region.