ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 10 / UIF:8.2 / MODERNSCIENCE.UZ
721
DIGITAL CURRENCIES (CBDC) AND THEIR INTEGRATION INTO THE
NATIONAL FINANCIAL SYSTEM
Mehri Tuygunova
a student of the Republican Academic.
S.H. Sirojidinov
Lyceum named after.
https://doi.org/10.5281/zenodo.17492180
Abstract.
This article analyzes the concept of Central Bank Digital Currencies (CBDC),
their role in the economy, and the process of integrating them into the national financial system.
It also explores the advantages, risks, and challenges associated with the introduction of
CBDCs and discusses the potential for their application in Uzbekistan.
Keywords:
digital currency, central bank, CBDC, financial system, blockchain, monetary
policy, payment system, economic stability.
Аннотация.
В данной статье анализируется концепция цифровых валют
центральных банков (CBDC), их роль в экономике и процесс интеграции в национальную
финансовую систему. Также рассматриваются преимущества, риски и проблемы,
связанные с внедрением CBDC, и обсуждается потенциал их применения в Узбекистане.
Ключевые слова:
цифровая валюта, центральный банк, CBDC, финансовая
система, блокчейн, денежно-кредитная политика, платежная система, экономическая
стабильность.
In recent years, the global financial system has been undergoing a process of digital
transformation. One of the most important aspects of this transformation is the development and
implementation of Central Bank Digital Currencies (CBDC). These currencies not only
modernize payment systems but also enhance economic security and financial inclusion.
Many countries, including China, Sweden, Nigeria, and members of the European Union,
are experimenting with CBDC projects. Uzbekistan is also among the nations exploring this
innovative area.
A CBDC is a digital form of money issued and guaranteed by a central bank. It serves as
an electronic equivalent of physical cash. Unlike cryptocurrencies, CBDCs are centrally
controlled and directly linked to the value of the national currency.
CBDCs are generally divided into two main types:
Retail CBDC: used by individuals and businesses for everyday transactions.
Wholesale CBDC: designed for interbank settlements and large-scale financial
operations.
Tab 1. Analysis of the impact of CBDC on the national financial system
№
Area of Impact
Mechanism of
Influence
Positive Outcomes
Potential Risks
1
Efficiency of the
Payment System
CBDC enables real-
time payments and
reduces intermediaries
Faster and cheaper
transactions,
improved financial
inclusion
Cyberattacks,
technical
malfunctions
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 10 / UIF:8.2 / MODERNSCIENCE.UZ
722
2
Monetary Policy
Management
Central banks can
monitor and control
the money supply
directly through
CBDC
More effective
inflation and interest
rate control
Over-
centralization,
potential loss of
privacy
3
National
Currency
Stability
The digital form of the
national currency
strengthens its
credibility and control
Increases trust in the
national currency,
reduces the shadow
economy
Poor regulation
may increase
currency risks
4
Financial
Transparency
Every transaction is
recorded on
blockchain technology
Improved anti-
corruption measures
and tracking of
illegal funds
Risk of data
exposure and
privacy breaches
5
Impact on the
Banking Sector
Citizens can store and
use money directly
with the central bank
via CBDC
Encourages
competition and
improves service
quality
Possible reduction
of deposits in
commercial banks
6
Financial
Inclusion
Mobile and digital
access allows wider
use of payment
services
Expands access to
financial services for
all population groups
Low digital literacy
may limit
participation
7
International
Settlements
CBDC supports faster
and cheaper cross-
border transactions
More efficient global
payment systems
and reduced costs
Coordination
challenges between
countries
8
Macroeconomic
Stability
Enhanced control over
financial flows and
transparency
Higher tax revenues
and more effective
fiscal policy
Excessive
monitoring could
discourage private
investment
The introduction of CBDC fundamentally transforms the national financial system by:
increasing the speed and transparency of payments,
enhancing control over monetary policy,
strengthening financial inclusion and economic stability.
However, to ensure long-term success, the implementation must be gradual,
technologically secure, and supported by strong legal and regulatory frameworks.
Tab 2. Analysis of the challenges in implementing CBDC
№
Problem area
Description of the
problem
Negative
consequences
Possible solutions
1
Lack of
Technical
Infrastructure
Insufficient servers,
networks, and
technological
resources for digital
transactions
System failures,
payment delays,
loss of public trust
Gradual
development of
digital infrastructure,
increase in IT
investments
2
Cybersecurity
Risks
CBDC systems may
be targeted by
hackers or
cyberattacks
Data breaches,
financial losses,
decline in
confidence
Implement advanced
encryption
algorithms and
strong cybersecurity
measures
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 10 / UIF:8.2 / MODERNSCIENCE.UZ
723
3
Privacy
Concerns
Every transaction is
traceable, which may
lead to intrusion into
users’ personal lives
Public
dissatisfaction,
reluctance to use
CBDC
Develop systems that
ensure partial
anonymity and data
protection
4
Legal and
Regulatory
Uncertainty
Lack of specific laws
and regulatory
frameworks for
CBDC
Legal gaps,
disputes, and
potential economic
instability
Develop clear and
comprehensive legal
frameworks for
CBDC
5
Pressure on the
Banking Sector
Direct accounts with
the central bank
could reduce
deposits in
commercial banks
Decreased liquidity
and reduced lending
capacity
Introduce a balanced
model between
CBDC and
commercial banks
6
Low Digital
Literacy
A significant part of
the population lacks
sufficient digital
skills
Limited adoption
and inefficient use
of CBDC
Implement
nationwide digital
literacy and financial
education programs
7
International
Coordination
Challenges
Different countries
develop independent
CBDC systems that
may not be
compatible
Issues with cross-
border payments
and international
integration
Establish global
CBDC standards and
cooperation
mechanisms
8
Impact on
Economic
Stability
The introduction of
CBDC may affect
money circulation
and market balance
Short-term
instability in the
financial system
Conduct pilot
projects and phased
implementation
strategies
The implementation of CBDC presents significant opportunities but also serious
challenges.
Key issues are technical, legal, and social in nature. To ensure a successful transition,
countries should:
establish strong cybersecurity infrastructure,
develop a clear legal and regulatory framework,
improve digital literacy, and
introduce pilot phases before full deployment.
These measures will help minimize risks and ensure that CBDCs contribute to sustainable
economic growth and financial stability.
The Central Bank of Uzbekistan began studying the concept of a digital so‘m in 2023.
Under the “Digital Uzbekistan – 2030” strategy, the government is working on
modernizing payment systems and supporting fintech initiatives.
Potential benefits of introducing a digital sum include:
Increasing the independence and reliability of the national payment system;
Expanding public access to banking services;
Reducing the volume of cash circulation;
Enhancing oversight and transparency of financial transactions.
ISSN:
2181-3906
2025
International scientific journal
«MODERN SCIENCE АND RESEARCH»
VOLUME 4 / ISSUE 10 / UIF:8.2 / MODERNSCIENCE.UZ
724
Conclusion
Digital currencies are becoming an integral part of the modern financial ecosystem. They
contribute to economic stability, financial transparency, and more effective monetary policy
management. However, the introduction of CBDCs must be carried out carefully, with sufficient
technological and legal infrastructure in place.
For Uzbekistan, the creation of a digital so‘m would represent an important step toward
digital transformation and strengthening the stability of the financial system.
References
1.
Bank for International Settlements (BIS). Central Bank Digital Currencies: Foundational
Principles and Core Features. Basel, 2023.
2.
International Monetary Fund (IMF). The Rise of Central Bank Digital Currencies:
Opportunities and Challenges. Washington D.C., 2024.
3.
World Bank. Digital Financial Inclusion and CBDCs: Policy Implications for Developing
Economies. Washington D.C., 2024.
4.
European Central Bank (ECB). Report on the Digital Euro – Progress and Next Steps.
Frankfurt, 2023.
5.
People’s Bank of China. e-CNY Research and Development White Paper. Beijing, 2023.
6.
Decree of the President of the Republic of Uzbekistan. “On the Strategy for Digital
Uzbekistan – 2030.” Tashkent, 2023.
