Bad news for Azerbaijani crypto-enthusiasts…
Alim Guliyev, first Chairman of The Central Bank of Azerbaijan (CBA), announced in a recent statement that the national bank has no plan to implement its own digital currency.
In a statement given in Baku on Thursday, Guliyev stated the bank’s conservative attitude toward banking, stating its apprehension toward the “great risks” that come with dealing in cryptocurrency [Source: The CC Press]
Guliyev also expressed an apprehension toward the anonymity provided by blockchain technology, which has been known to be exploited for fraud and money laundering.
Naturally, local users have been advised by CBA chair Elma Rustamov to remain vigilant when using cryptocurrencies.
Other associations don’t quite share the same view, however. Speaking at the Singapore Fintech Festival, IMF chair Christine Lagarde encouraged the bank to consider the benefits of issuing a dedicated cryptocurrency – particularly their high security and unmatched privacy.
She also stated that digital currencies are easily integrated with social media, which could make online and one-to-one transfers simpler and more convenient in an increasingly tech-reliant culture.
Indeed, several banks are beginning to embrace the idea of digital currency. This includes Venezuela’s Petro currency (which is backed by the country’s oil and gas reserves), as well as plans Japan’s J-Coin, Tunisia’s eDinar and the Swedish E-krona.
The Central Bank of Iran is also in the process of finalising an “indigenous cryptocurrency” to evade US sanctions renewed by the Trump government on November 5.