UZBEKISTAN’S TRANSITION TO A CASHLESS SOCIETY: POLICY REFORMS AND COMPARATIVE ANALYSIS

Abstract

Uzbekistan is undergoing a rapid transition toward a cashless society, driven by government policy, technological
infrastructure development, and changing consumer behaviors. This article analyzes Uzbekistan’s national shift from
cash to digital payments through an IMRAD-structured study focusing on policies, infrastructure, and international
context. A comprehensive literature review (global and local) highlights the benefits of cashless economies – efficiency,
transparency, inclusion – as well as challenges like security risks and cultural resistance. The methodology combines
a review of academic and policy literature with an analysis of government initiatives and legal reforms (e.g., the 2019
Payment Systems Law) and a comparative examination of cashless transitions in other countries. Results show that
state-led efforts – from modernized payment networks to incentives and transaction limits – have significantly increased
non-cash transactions in Uzbekistan. By 2023, nearly half of retail transactions were digital, reflecting the impact of these
reforms. A discussion situates Uzbekistan’s progress relative to international peers and identifies remaining hurdles, such
as cybersecurity and ensuring rural inclusion. The findings suggest that Uzbekistan’s proactive approach aligns well
with global trends and user adoption among the young generation. The conclusion emphasizes that while Uzbekistan’s
cashless trajectory is well underway and even ahead of some regional neighbors, continued attention to security, literacy,
and inclusive access will be vital to fully realize an efficient, transparent, and inclusive cashless economy.