BAKU, Azerbaijan, September 29. The adoption of the law "On Payment Services and Payment Systems" will play a significant role in the development of the digital payments ecosystem in Azerbaijan, but the law as a whole does not contain any provisions regarding digital currencies, including the digital currency of the Central Bank, and this sphere is not regulated, Hayaleddin Tagiyev, chief specialist of the Payment Systems and Settlements Department of the Central Bank of Azerbaijan (CBA), told Trend.
"It is worth noting that most central banks and think tanks in the world are currently conducting basic research to assess the feasibility of implementing a Central Bank Digital Currency (CBDC). Thus, in order to define a conceptual approach in this direction in our country, the CBA took advantage of relevant technical assistance opportunities," he said.
Tagiyev also noted the objectives behind the establishment of CBDC under technical assistance, the design features of CBDC, the legal and regulatory framework, the policy implications (monetary policy, financial stability, financial inclusiveness), and the existing infrastructure of digital payment systems. As a continuation of the work done in this area, studies and pilot projects conducted in other countries are closely monitored by the Central Bank, and their experiences are studied.
The Law "On Payment Services and Payment Systems" was adopted by the Milli Majlis (Parliament) on July 14 and signed by President of Azerbaijan Ilham Aliyev on August 9.