Azerbaijan's Central Bank to apply smart contracts

Business Materials 16 November 2018 09:33 (UTC +04:00)
The Central Bank of Azerbaijan (CBA) is preparing to apply smart contracts
Azerbaijan's Central Bank to apply smart contracts

Baku, Azerbaijan, Nov. 16

By Huseyn Valiyev - Trend:

The Central Bank of Azerbaijan (CBA) is preparing to apply smart contracts, Director of the Information Technology Department of the CBA Farid Osmanov said at the 3rd International Banking Forum in Baku.

He said that business processes in many structures, commercial banks and credit institutions differ from each other.

“Smart contracts automate all processes, and this doesn’t allow making any changes to them,” he noted. “Over 20 countries are already thinking about applying blockchain technology in automation process of state resources. This issue is in the spotlight of central banks. About 90 central banks in the world intend to apply the blockchain technology in their activities.”

He said that there are three attributes of information security: ensuring its integrity, confidentiality and availability.

“Namely for this purpose, we chose the blockchain technology, which meets all the listed requirements,” he added. “The CBA is implementing a test project of creating a digital identification system, the purpose of which is to automate the services of individuals and legal entities, credit organizations. For example, those who apply to several credit organizations must provide the same documents. The main goal of the project is the automation of this process, which will make it possible to open an account and take a loan in several minutes.”

A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract in blockchain technology.