Uzbekistan’s Central Bank and the National Agency for Prospective Projects (NAPP) have begun monitoring a pilot project for the use of the Humo stablecoin as a payment instrument, according to the Central Bank.
The pilot will test the issuance, circulation and redemption of the stablecoin, as well as its use for payments for goods, work and services in Uzbekistan. More than 20 entrepreneurs are prepared to participate in the project as merchants. The Humo stablecoin will be backed by government securities, with one Humo token valued at UZS 1. The project participants plan to integrate banking, processing and blockchain infrastructure to facilitate settlements using the digital asset.
Asterium, which is licensed to operate as a crypto depository, crypto exchange and crypto store, will cooperate with banks and other participating businesses as part of the project. The initiative is being implemented by Humo Digital. In coordination with the Central Bank, the company has been registered by NAPP as a participant in a special legal regime, or regulatory sandbox, governing the circulation of stable tokens.
The initial testing period is set at 12 months. The project may subsequently be extended for a period of up to three years. The pilot is intended to assess the potential use of stablecoins to accelerate settlements in business activities and examine their impact on transaction transparency and security. Regulators will also identify risks associated with the model and consider mechanisms to address them.
During testing, authorities will assess the technological aspects of the system, the adequacy and security of the assets backing the stablecoin, operational transparency and financial and operational risks. The assessment will also cover information and cybersecurity, consumer protection and compliance with anti-money laundering requirements.
The Central Bank will separately monitor whether the project is consistent with its monetary policy objectives and instruments and assess potential risks to financial and price stability. Following completion of the pilot, regulators plan to evaluate the practical feasibility of using a stablecoin model backed by government securities. The results will also be used to determine further approaches to regulating digital financial assets in Uzbekistan.
