Uzbekistan CBDC Tracker

Uzbekistan is in the research phase.

CBDC History and Development

In 2021, it was reported that Central Bank of Uzbekistan deputy director Shukhrat Fayzullaev said the central bank was “undertaking a pre-project study for a CBDC.” Specifically, that involved analyzing what is needed to introduce a CBDC, assessing the experience of other countries, and figuring out what resources will be needed to develop a CBDC.

In June 2023, the Central Bank, the National Agency of Perspective Projects, and the Competition Promotion and Consumer Protection Committee of the Republic of Uzbekistan hosted a two-day forum. CBDC projects, pilots, results, and conclusions were listed among the key topics of the forum.

Human Rights and Civil Liberties Concerns

Uzbekistan earned a 12 out of 100 in Freedom House’s 2023 Freedom in the World report. As Freedom House noted in the report, restrictions on criticism and the pervasiveness of corruption are major issues for Uzbekistan. The issuance or adoption of a CBDC in Uzbekistan could worsen these issues.

As Freedom House explains, “Unregistered NGOs have faced severe repression and harassment.” Unfortunately, a CBDC could be used as another tool in this effort. Across the world, governments have often turned to freezing and seizing the money of activists, political rivals, and protestors to undermine the opposition. A CBDC would make such initiatives easier by allowing governments to take direct control of each citizen’s finances.

“Corruption is pervasive,” according to Freedom House. The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.