The Central Bank of Azerbaijan (CBA) doesn’t plan to issue its own cryptocurrency due to the risks associated with this step. The first deputy chairman of the CBA, Alim Guliyev, told reporters about this.
According to him, the regulator is very conservative about cryptocurrencies, considering that these financial instruments carry great risks. He noted that digital money is often used to launder funds obtained by illegal means, they are not regulated, and it’s unclear who the ultimate beneficiary is.
Earlier this year, the head of the CBA, Elman Rustamov, called on the population of the country to be cautious in operations with cryptocurrencies. As he stressed, these investments are extremely risky.
Despite this fact the Central Bank of Azerbaijan is actively preparing to use smart contracts that automate all processes, not allowing making any changes to them. The Ministry of Justice of Azerbaijan is working on the introduction of smart contracts technology in the country's utility system, which should ensure transparency and prevent falsification in this area.
Another opinion about this is shared by the head of the International Monetary Fund (IMF), Christine Lagarde, who this week, after the publication of the department’s research, said that the international community should consider the possibility of introducing digital currencies (CBDC) issued by the central bank.
In November, it also became known that the Ministry of Justice of Azerbaijan is working on the introduction of smart contracts technology in the country's utility system, which should ensure transparency and prevent falsification in this area.
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