Uzbekistan Approves Private Bank for National Crypto Card Project

The Republic of Uzbekistan has welcomed a new private bank into its ongoing national crypto card initiative.

The country's digital asset regulatory body, the National Agency of Perspective Projects (NAPP), has declared JSV "Ravnaq-bank" as a participant in the Special Regulatory Sandbox Regime, according to a press release on August 15, 2023.

This framework, introduced by Uzbekistan's Ministry of Justice in late 2022, empowers selected entities in the nation's crypto space to provide specialized services.

Ravnaq-bank has now gained authorization under this regime to actively engage in the testing phase of the nation's crypto card project, introducing a virtual bank card called "CRYPTO CARD – UzNEX."

This innovative plastic card allows users to add funds to their main account by swiftly liquidating crypto assets stored in a digital wallet on a partnered crypto exchange platform.

The UzNEX crypto card stands out by combining a bank account with direct cryptocurrency exchange access, offering users a comprehensive financial experience that bridges conventional banking and the world of digital currency.

To ensure its compatibility with various financial systems, including the Mastercard payment platform, the NAPP has highlighted that testing the crypto card's integration will be a priority.

What is a Crypto Card?

A crypto card a special type of virtual bank card that includes both traditional banking and digital currencies like Bitcoin or Ethereum.

Cryptocurrencies stored in a digital wallet can be converted into regular money and used in places that accept credit cards using this card.

Next Steps

Aiming for an ambitious rollout by December 2023, the project involves major players like Kapitalbank and Ravnaq, two out of the three registered entities in Uzbekistan's national digital sandbox.

NAPP data reveals that Ravnaq-bank is the second participant to join this venture, following Kapitalbank's approval in May 2023.

Ravnaq-bank plans to initiate its testing phase by the close of October 2023, while Kapitalbank has already commenced testing in June 2023. The NAPP anticipates a full project launch by both banks by late December 2023.

Apart from these private banks, the final member of the Special Regulatory Sandbox Regime is UZINFOCOM.

The company has received authorization to develop NFT certificates based on distributed data registry technology.