ICO may help businesses in Azerbaijan attract funds: expert
Baku, Azerbaijan, March 19
By Ilkin Shafiyev - Trend
The use of crypto-currency in Azerbaijan would help the financial sector development, crypto-currency expert Sanan Hasanov told Trend on March 19.
He said crypto-currencies could create new investment opportunities for population and a new source of financing for businesses.
"Usually, a company that seeks to attract financing takes a loan from a bank. An alternative can be initial coin offering (ICO). That is, the business issues crypto-currency, and the population buys it, thus investing in this business. The cost of crypto-currency will grow with the expansion of the business," the expert said.
Such a mechanism, Hasanov emphasized, will allow businesses attract funds directly. "Through the ICO, a company can attract financing on more favorable terms than via banks. In addition, funds that remain outside the banking system can be raised for the development of the business. This can benefit the population, companies, and the economy as a whole," the expert said.