BAKU, Azerbaijan, December 3. This week it has become known that the Binance cryptocurrency exchange is ready to support the Azerbaijani Central Bank in establishing the mechanism for regulating crypto-assets and has already held relevant discussions with the bank, Trend reports.
It was also noted that increased use of digital currencies globally wouldn't affect the volatility of crypto assets. Crypto and digital currencies have different functions as well as have no effect on each other.
In addition, it has been reported that Binance sees great potential for the development of the cryptocurrency market and blockchain technology in the foreseeable future. It has been revealed that the cryptosphere has considerable innovative potential, which is confirmed by the number of startups that are increasingly falling within this area. Even despite this year's decline in crypto-assets, we see that the technology has withstood and interest in it will only be growing. This technology solves the problems facing citizens, including financial services at minimal cost and even faster.
It was also noted that proceeding from the number of Binance system users, the CIS countries are interested in developing both blockchain technology and cryptocurrency. These countries show interest in Binance products, including the complex structured ones. In addition, this year we held meetings in Kazakhstan, Kyrgyzstan, and other countries, as well as plan to expand our activity into new geography.
As reported this week, it is scheduled to use blockchain technology in Azerbaijan's insurance market as part of the social and economic development strategy for 2022-2026. Blockchain technology is also supposed to be implemented in other areas of the Azerbaijani economy in the subsequent stages.
In addition, this week it has become known that Azerbaijan and the US could cooperate in developing solutions for cybersecurity, training, education, and exchanges in this area. There is also an opportunity for mutual investment in developing new solutions. There is already cybersecurity cooperation between Azerbaijan and Israel, as well as Israel and the US. This can serve as the basis for a closer partnership in this direction.
It was revealed that Azerbaijan's Azericard LLC processing center is implementing a number of major projects jointly with Visa and Mastercard international payment systems. The company is focused on expanding the coverage of the 'Quick payment' project. In this regard, it is scheduled to apply another type of identification by 2023. This identification method is expected to use biometric data, not only through face recognition but also through palm scans. Biometric payment will allow us to integrate this payment method in retail outlets.
In addition, Azerbaijan introduces new requirements related to mobile device registration. The mobile device registration should be carried out in the manner prescribed by the relevant executive authority. In order to prevent avoiding mobile device registration, it's prohibited to change or copy the device's IMEI number (International Mobile Equipment Identity), as well as provide telecommunications services to the devices, IMEI numbers of which are blacklisted.
It has become known that after the adoption of the Law "On payment systems and services, public APIs are supposed to be integrated with banks from 2023. Central Bank would provide banks with consulting and methodological support for the Open Banking integration. In 2021, the Central Bank designed a roadmap for Open Banking spanning the implementation period till 2025.
Also this week, it has been reported that it's planned to prepare a relevant strategy (Digital Economy Development Strategy) in order to create a digital economy in Azerbaijan. A working group consisting of representatives of Azerbaijan's Ministry of Economy, C4IR, Ministry of Finance, Central Bank of Azerbaijan, and Ministry of Science and Education has been established. The strategy of the digital economy is aimed at solving such issues as the creation of a digital ecosystem, and the proper and systematic development of the digital economy.
In addition, as noted this week, the funds of Azerbaijan's newly created Caucasus Ventures are going to be directed toward the development of start-up projects in fields such as financial technology, medicine, education, cloud technology, artificial intelligence, and others. More than 60 percent of the fund's budget will be directed to support Azerbaijani projects, while the rest is planned to be invested in the regions of Eastern Europe and Central Asia. The budget of the venture fund is 11.3 million manat ($6.6 million). The Innovation Agency under the Ministry of Digital Development and Transport of Azerbaijan and PASHA Holding each have allocated five million manat ($2.9 million) to the fund's budget, while the contribution of the individual entrepreneurs amounted to 1.3 million manat ($760,000).