Azerbaijan’s Vision for Digital Identification
The Republic of Azerbaijan is stepping into the digital age with a bold plan: a blockchain-based digital identification system set to debut in early 2020. Farid Osmanov, the director of the information technology department at the Central Bank of Azerbaijan (CBA), announced this initiative at the fourth International Banking Forum, a pivotal event for finance enthusiasts.
What’s on the Horizon?
According to Osmanov’s statements reported by local news agency Trend News, the new system aims to enhance the security of personal data flowing into credit organizations while simultaneously making financial transactions more remote-friendly. It’s like moving from a horse-drawn carriage to a Tesla in the world of banking.
Stages of Implementation
This digital transition will unfold in stages. Initially, both legal entities and individuals will be able to open remote accounts. But wait, there’s more! The project’s ultimate goal is to incorporate additional banking services while tightening the screws on fund monitoring systems to combat money laundering and terrorism financing. Sounds like a superhero plan for the banking sector!
The Shift to Open Banking
Osmanov confidently predicted that adopting this system would usher in the “transition of the CBA to open banking.” This marks a significant transformation, aligning Azerbaijan’s banking practices with global trends—a bit like when the world switched from flip phones to smartphones. Expect transparency and customer-centric services galore!
A Recap of the International Banking Forum
The International Banking Forum held in Baku brought together major players in the financial sector. Supported by the CBA, the Financial Market Supervisory Authority, and the Center for Analysis of Economic Reforms and Communications, this event highlighted the eagerness for technological advancements in banking. Imagine a gathering where everyone shares innovative ideas and no one wants to leave the dessert table!
A Glance at Azerbaijan’s Digital Currency Landscape
Since 2018, blockchain-powered identification has been woven into Azerbaijan’s technological roadmap. The government laid out the goal through the “State Program on Expansion of Digital Payments for 2018-2020”—a catchy title, if you ask me. And while the CBA was not considering issuing a central bank digital currency as of late 2018, other developments in the sector are likely to spark conversation. Moreover, crypto-to-fiat transactions are now taxable, thanks to a May 2018 statement from the Taxes Ministry. Looks like even cryptocurrencies can’t escape the taxman!
