On the first day of the Tashkent International Investment Forum, a panel discussion on the topic "Digital Money: A Look into the Future" was held.

During the discussion prospects for the development of digital money and its impact on banking, finance and society as a whole were considered. Moderator Timothy Eun, Managing Director of Trace Capital Holdings, asked speakers what they think about development of digital money, what the positive and negative sides of this process are, including in terms of the realities of Uzbekistan. What problems does this modern method of payment solve?

Deputy chairman of the Central Bank of the Republic of Uzbekistan Ilkhom Abdugaffarov highlighted that digital money provides such benefits as speed, security and convenience for the population. The cost of payment is reduced, which is also a support for their use by the public. Having financial accessibility for consumers also helps the development of digital money.

- The role of technology is dominant," says Ilkhom Abdugaffarov. - From the side of the Central Bank, we have introduced two payment systems of instant payments, which are also beneficial for business entities. We launched biometric identification, which allowed not only to carry out payments but also to identify a person. Technological progress and the growing needs of the population and businesses require even more development in this direction. To give you an example, if we have 35 banks, there are 54 payment organizations competing with them. E-commerce is doubling every year. Compared to the previous reporting year, 70 percent more users have started to open e-wallets.

The expert said that the Central Bank has created a new division that works with the population in the regions, including the older generation, to develop financial literacy.

The Vice-President, Country Manager for Central Asia and Azerbaijan, Cristina Doros believes that digital money has now become an important part of our lives thanks to digitalization. She sees conditions in Uzbekistan as excellent because of the many new niches and the active development of technology.

- A certain part of our lives is "chained" to phones, which is why there is such interest in digital money. The development has been rapid. People used to underestimate digital money. Twenty years ago, you had to call or look for a bank to get a loan, you had to go there yourself. All you have to do now is open an app on your smartphone and request a loan. Of course, technological development plays an important role in this process. Rapid advances in technology are creating more and more convenient and secure ways to pay, which is attracting more and more users. In addition, the coronavirus pandemic has just pushed us to use digital money more because it's convenient. All of this is part of development. In Uzbekistan, I think, there are many opportunities, including for the development of technology and digital payments.

Now electronic money is in active development, and this is due to several factors. First of all, it is the development of cell phones, which many people now have. This is an important factor for the development of electronic money. More and more people are using mobile devices to pay for various services and goods, which leads to a significant increase in the volume of electronic money.

Farrukh Abdullakhanov, Partner of KPMG, said that due to this means of payment we can digitally save and multiply our finances. The specialist said that Uzbekistan has huge potential for this direction, including through the younger generation, who will inevitably use digital money.

- The question arises, what could we offer as an alternative to digital money? - says Farrukh Abdullakhanov. That is, technology is already moving forward. In the electronic format it is easier to build a level of trust with consumers and transparency in terms of circulation of funds.

The specialist believes that over the past five years there has been progress in laying the groundwork for the "takeoff" of the country.

Michael Khoi, CEO and founder of ZoodPay and ZoodMall, shared the story of the company's development in a changing Uzbekistan:

- Our marketplace is built around credit. We provide the consumer with small loans and the person with a positive credit history with more financing. We have this mix between credit and e-commerce. Four years ago, 85 percent of the money circulation in Uzbekistan was in cash. Now more is moving to digital transactions, meaning consumers have been able to take advantage of e-commerce as well. Paper money, in turn, does not allow to react quickly to changes in the market and customer needs. However, in the digital space, all transactions are tracked and stored in a database, making it possible to analyze consumer habits and better predict market trends.

At the same time, although paper money is still popular in Uzbekistan, more and more people are switching to electronic money, and this opens up new opportunities for its development.

Michael Khoi noted President Shavkat Mirziyoyev's speech at TIIF-2023 and stressed that Uzbekistan is increasing its presence in fintech. He stresses that the use of digital money can create an entire ecosystem and improve credit conditions. The specialist notes that electronic money allows companies to issue more loans and reduce the amount of borrowed funds. Consumers always want to get money quickly and conveniently, and e-money allows them to do that. With their help, it is possible to accelerate and simplify getting a loan, which in turn has a positive impact on the credit history of the borrower.

- A few years ago, the situation was different. Previously, there was no such investment in IT, but now there are more companies, universities, and organizations in the country that provide new jobs. There is growth, and there are all conditions for it in Uzbekistan," Michael Khoi said.