Uzbekistan and Tether Team Up to Boost Crypto and Blockchain Innovation

Uzbekistan has embarked on a journey to enhance its cryptocurrency and blockchain sector by partnering with Tether Limited, known for its leading stablecoin. This partnership, confirmed through a Memorandum of Understanding (MOU) with Uzbekistan's National Agency of Perspective Projects (NAPP), was announced on March 7. NAPP, the leading regulator for crypto and blockchain in Uzbekistan, seeks to transform the country into a key hub for blockchain and peer-to-peer technology innovation, aiming for economic growth and innovation.

The core aim of this partnership is to establish a legal and regulatory framework supportive of digital asset growth in Uzbekistan. This includes efforts to develop a national digital currency, explore tokenization of assets, and upgrade digital payment systems for efficiency. Tether and NAPP plan to create an independent system for communication and financial transactions, promising faster, cheaper, and more secure operations. Education is also a focal point, with plans to involve educational institutions in developing blockchain technology, stablecoins, and their uses, readying people for the future digital asset industry. This collaboration is a strategic move by Uzbekistan to boost its blockchain ecosystem and position itself as a global blockchain leader. It is expected to support local startups and attract technology companies, and professionals worldwide, enhancing Uzbekistan's appeal as a tech hub.

According to NAPP's director, Lee Dmitriy Romanovich, integrating a blockchain ecosystem could significantly improve Uzbek citizens' lives. Uzbekistan has been proactive in regulating digital assets since 2022, introducing a preliminary regulatory framework and creating NAPP. The country has made strides in integrating digital assets while ensuring balanced regulation. Uzbekistan legally recognizes crypto, but not as legal tender, allowing crypto operations only through regulated local providers. The country has also created a special zone with tax advantages and simplified regulations to draw crypto businesses and investment, showing its commitment to nurturing a friendly environment for digital asset innovation and growth.