CRYPTOCURRENCIES AND THEIR IMPACT ON FINANCIAL SECURITY: EVIDENCE FROM UZBEKISTAN
Abstract
This article examines the multifaceted relationship between cryptocurrencies and financial security, with particular emphasis on the experience of Uzbekistan during the 2021–2025 reform cycle. Drawing on official statistical data published by the State Statistics Committee of the Republic of Uzbekistan, the Tax Committee, and regulatory instruments documented through the national legislative portal, this study analyzes the ways in which digital assets have reshaped macroeconomic stability considerations, cross-border capital flows, tax collection capacity, and the operational frameworks of anti-money laundering and counter-terrorism financing supervision. The empirical evidence assembled here reveals that, while cryptocurrency adoption has generated measurable fiscal gains and accelerated financial digitalization, it has simultaneously exposed the economy to systemic vulnerabilities rooted in price volatility, regulatory arbitrage, and the facilitation of illicit financial flows. The article concludes by synthesizing these findings into actionable policy recommendations calibrated to the country’s institutional context and its stated ambition to become a regional digital finance hub.