The Republic of Uzbekistan won’t ever undertake cryptocurrencies like Bitcoin (BTC) as a fee methodology, in keeping with a central financial institution official.

Behzod Khamraev, deputy chairman of the Central Financial institution of Uzbekistan (CBU), predicted that native authorities won’t ever permit residents to make use of Bitcoin as fee, alleging that BTC is backed by nothing.

In an interview with native enterprise publication, Khamraev argued that Bitcoin is broadly thought-about “speculative” and can by no means grow to be equal to fiat currencies like america greenback, the euro, the Japanese yen or the Russian ruble.

The official identified that there are about 28 trillion Uzbekistani soms in circulation, and all of these are backed by the central financial institution’s property.

“One may even see an inscription concerning the regulator’s obligations on the banknotes, whereas cryptocurrency will not be backed by something,” Khamraev added. The official’s feedback got here quickly after El Salvador turned the primary nation on the earth to adopt Bitcoin as legal tender alongside the U.S. greenback on Sept. 7.

Uzbekistan formally banned its residents from making funds in cryptocurrencies like Bitcoin in late 2019 as a part of an order of the director of the Nationwide Company for Venture Administration (NAPM) below the president of the Republic of Uzbekistan. “Crypto property can’t be used as a way of sending or receiving funds on the territory of the Republic of Uzbekistan,” the order mentioned.

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In April 2021, the NAPM proposed to legalize cryptocurrency trading in Uzbekistan to permit residents to alternate crypto property towards nationwide and foreign currency echange. The authority beforehand banned its citizens from purchasing cryptocurrencies in late 2019.

The CBU and the NAPM didn’t instantly reply to Cointelegraph’s request for remark.