Why is this important
Against the backdrop of growing global interest in crypto assets, the regulator’s position emphasizes the course towards conservative reserve management. The decision influences the prospects for legalizing cryptocurrencies in the financial system and determines the scope of regulation. Against the backdrop of record growth in gold reserves, the Central Bank is increasing its focus on stable assets.
What happened
- The head of the Central Bank’s International Reserves Department, Sanjar Valiyev, stated that cryptocurrencies “are not suitable for reserves” due to their instability.
- The regulator cited the lack of a liquid market and global standards in the field of crypto assets.
- Valiyev emphasized that developed countries only added crypto assets after large-scale diversification of their reserves.
- Uzbekistan’s gold and foreign exchange reserves reached $50 billion in August, including $40 billion in gold.
- Foreign currency reserves decreased to $9.5 billion, while investments in US Treasury bonds increased to $1.016 billion.
Context
In August, the Central Bank updated the historical maximum for gold reserves — 11.8 million ounces. Uzbekistan is actively increasing its gold and foreign exchange reserves, despite the decrease in the foreign exchange component.
The Central Bank’s position aligns with many regulators who avoid cryptocurrencies as reserve assets, despite investor interest. The cryptocurrency market remains outside the regulator’s trust zone, despite its growth and international trends.
