BAKU, Azerbaijan, February 11. The Central Bank of Azerbaijan (CBA) is evaluating several approaches for the technological foundation of the digital manat, the CBA told Trend.
"The global central banks are conducting extensive research and pilot projects on Central Bank Digital Currencies [CBDCs]. The primary aim of this process is to enhance the efficiency of financial systems, expand cashless transactions, and support digital transformation," the CBA said.
The Central Bank of Azerbaijan, considering international best practices, is assessing the feasibility of implementing a digital manat. Extensive analysis has been conducted on the economic impact, legal framework, and technological infrastructure of CBDCs with the technical assistance of the International Monetary Fund.
"The technological foundation for the digital manat is being considered from several key perspectives—blockchain and Distributed Ledger Technology [DLT], as well as secure payment platforms based on centralized databases. Different approaches can be observed in international practices. For example, the People's Bank of China employs a centralized management model for the digital yuan, while the European Central Bank is testing distributed ledger technologies for the digital euro. The Central Bank of Azerbaijan will determine the technological solution for the digital manat by studying international experience and taking into account the specifics of the local financial sector," the CBA added.