Central Bank talks implementation of first blockchain project in Azerbaijan (Exclusive)
Baku, Azerbaijan, Jan. 30
By Huseyn Valiyev – Trend:
The first phase of the project of forming a digital identification system based upon the blockchain technology will complete by the end of this year, the Central Bank of Azerbaijan told Trend on Jan. 30.
At the initial stage, the services of opening bank accounts and obtaining loans by individuals and legal entities is planned to be automated upon the blockchain technology.
"The creation of a digital identification system based on the blockchain technology will ensure the stability and accuracy of information exchange,” the central bank. “In the future, new products will be created on its basis. The main goal is to increase the number of e-banking services, establish relations between customers and banks at a more modern level and improve the quality of services through the modern technological solutions."
Presently, the Central Bank is working to expand the coverage of digital services and establish relations between customers and banks on the platform of innovative technologies that will allow providing the end users with e-services faster.
The work in this direction is carried out in accordance with the presidential decree as of September 26, 2018 on the implementation of the state program to expand digital payments in 2018-2020, the Central Bank said.
"A strategy for expanding innovative financial technologies and a strategy for creating a digital identification system based on distributed registry technologies should be prepared within the state program,” the central bank said. “For this purpose, a working group was created, which included experts from a number of commercial banks. The group regularly held meetings and assessed business process requiring automation.”
Moreover, to learn from international experience in this field, local specialists visited those countries where similar information systems have already been implemented.
"The main goal is to apply international practice, expand e-services and form digital skills in the society,” the central bank said. “The project must be viewed not only through the prism of benefits for the Central Bank, but also in terms of advantages for the country's banking sector."
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