THE ROLE OF DIGITALIZATION IN THE MONETARY SYSTEM AND ITS IMPACT ON THE IMPLEMENTATION OF MONETARY POLICY IN UZBEKISTAN

The article is devoted to the impact of the process of digitalization of the monetary system of the Republic of Uzbekistan on the effectiveness of the monetary policy of the Central Bank (CBU) in terms of inflation targeting and the transformation of the economy to the one of the market economies. It examines the theoretical foundations of the transmission mechanism in the digital space, data on empirical evidence regarding the dynamics of non-cash payment, digital banks, the money supply M 2, inflation and GDP during the years 2015-2025, the role of pilot projects of the digital som (CBDC) and stablecoins (since the year 2026), and obstacles (cybersecurity, risk of bank disintermediation, residual dollarization). Special care is being taken to enhance the transmission of policies (interest rate, credit) channels, financial inclusion and lessening the shadow economy. The article has been written in IMRAD format and gives practical tips on how an accelerated digitalization process may be made to achieve the specified inflation rate of 5% as early as 2027.