Uzbekistan decides to legalize bitcoin

While some countries and central banks show opposition against cryptocurrencies and warn investors against investing in them, it seems that others want to legalize the use of cryptocurrencies as a form of payment. In this category is included the state of Uzbekistan.

Uzbekistan is working on a law to regulate electronic money

According to local media, authorities in Uzbekistan have started to work on legislation to legalize bitcoin and other cryptocurrencies. The authorities started to work on this after a presidential decree was released on the matter. The presidential decree indicated that the new law for the so-called electronic money has to be done by September 1.

The decree indicated that the authorities responsible with working on the new legislation are the Central Bank, the Ministry of Information, Technologies and Communications, the Ministry of Economy and the Ministry of Finance.

The presidential decree also ordered authorities to create a special Center for Distributed Ledger Technologies. This center would be in charge with creating the right conditions for using the blockchain and its features. This new center is expected to open in the summer, on June 1.

Another important aspect that was present in the presidential decree is a call for increasing the use of international payment systems in Uzbekistan.

Uzbekistan has become an interesting destination for cryptocurrency mining, as the country is a leading producer of electricity. This means that mining operations can be easier and cheaper here. Of course, in such conditions Uzbekistan might become an important market for cryptocurrencies.

Without a doubt, all of this is something new for Uzbekistan, as until now the country did not seem to be a big supporter of cryptocurrencies. In fact, previously, the Central Bank of the country has claimed that cryptocurrencies could be "instruments of terrorism financing."