Blockchain for Bank Customer Relations Planned By Central Bank of Azerbaijan

Announcements, Blockchain, FinTech, News | January 2, 2018 By:

The Central Bank of Azerbaijan (CBA) is planning to use blockchain technology to create a digital identification system for relations between banks and customers.

The announcment came after CBA First Deputy Chairman Alim Guliyev said that he discussed the possibilities of using the technology in a meeting with the State Secretariat for Economic Affairs of Switzerland (SECO) and Deputy Regional Director for South Caucasus, Simone Haeberli, and Chairman of the Board of the Swiss Trub Trading, Christoph Willi Franzen.

He said the central bank is actively studying the use of blockchain in foreign countries and the potential of integrating systems of digital identification into information and payment systems. The CBA is also examining the blockchain experience of countries such as Georgia and Estonia.

In addition to the digital identification system, the CBA said it will continue to expand non-cash payments. It added that the implementation of the relevant program will significantly increase the use of modern payment infrastructure.

Last month, CBA chairman Elman Rustamov stated that the central bank has already launched negotiations with leading consulting companies and will implement blockchain technology in the financial and banking sectors.

“The Central Bank intends to help in studying this technology and its future use in the financial and banking sector of Azerbaijan, and in the future in public services for the population,” said Rustamov. “For this, we have already started negotiations with leading consulting companies. I think that at the first stage, we must create stable technological and legislative infrastructure, and then start introducing this technology,”