Uzbekistan Tests HUMO Stablecoin for Everyday Payments

Uzbekistan has begun its first experiment using a privately issued stablecoin called HUMO to pay for everyday goods and services. A stablecoin is a digital token designed to keep a fixed value, rather than rise and fall sharply like Bitcoin. One HUMO will be pegged to one Uzbek soum, with the tokens backed by government securities.

The name may cause some confusion because HUMO is also the name of an Uzbek payment system. The token is not a bank card or a central bank digital currency and is separate from that payment system. HUMO Digital, a private company, is listed by the National Agency for Perspective Projects (NAPP) as the stablecoin’s issuer.

The project is being conducted under the joint supervision of the Central Bank and NAPP.

Until now, crypto assets could not legally be used to pay directly for goods and services in Uzbekistan. The Central Bank and NAPP have decided to test an exception under a special regulatory regime.

On September 2, HUMO Digital was registered to take part in the experiment. The project will test the issuance, circulation, and redemption of HUMO, as well as its use to pay for goods and services.

More than 20 companies are prepared to accept the tokens during the pilot. Asterium, which is licensed as a crypto exchange, crypto depository, and crypto shop, is also participating in the project.