BAKU, Azerbaijan, July 25. Tokenization will change the concept of trade and trade relations, Christina Doros, Visa Vice President and Regional Manager for Central Asia and Azerbaijan, said in an interview with Trend.
According to her, Azerbaijan has seen a rapid growth in the number of tokenized transactions.
"The penetration rate of tokenized payments in Azerbaijan exceeds that of other countries, and that is remarkable. Tokenization is a significant trend today, and this technology will continue to expand. Any asset can be tokenized - from fiat currency to government securities, stocks, bonds, real estate documents, or cars. Any asset represented as a token on a digital platform can be easily monitored, checking its status in real-time. At Visa, we believe that when this trend becomes mainstream, it will change the concept of trade and trade relations itself because in the digital world, everything can be traded instantly and conveniently," she noted.
Furthermore, according to Doros, Azerbaijani banks actively utilize the B2B Connect solution.
"This solution is essentially non-card-based. It is built on blockchain technology and enables fast, secure, convenient, and controlled cross-border fund transfers for businesses engaged in foreign economic activity. In Azerbaijan, we observe a very active growth in bank connections to this technology. Azerbaijan has the highest number of banks working with the B2B Connect solution," she added.
Tokenization is a technology that secures mobile payments. Most contactless payments, including mobile payments (Apple Pay, Google Pay), involve transmitting card data, including its number. Tokenization technology replaces the actual card number of the customer with a unique generated code (token) that is used only for a specific transaction. Malicious actors cannot reuse the obtained information since the real card number is not explicitly transmitted, and the token has already been used. A new token will be issued for the next purchase.