Azerbaijan is in no hurry to legalize cryptocurrencies

By Faiq Mahmudov

In the rapidly evolving landscape of digital technologies, many countries are facing challenges related to the regulation of cryptocurrencies. The issues of creating legislative frameworks and integrating digital currencies are becoming increasingly relevant for Azerbaijan as well. Currently, the Central Bank of the country is actively researching this area, seeking to find a balance between innovation and the stability of the financial system.

In this article, News.Az discusses the prospects of digital currencies with leading economic expert Vugar Bayramov , who shares his views on the future of cryptocurrencies in Azerbaijan and the role of the Central Bank in their possible legalization.

Mr. Bayramov mentioned that the Central Bank has already identified the study of cryptocurrency use, including blockchain technology, as one of the priorities in its monetary policy: "This is because, on the one hand, studying virtual currencies and their application possibilities, and on the other hand, creating a payment system using cryptocurrencies, are among the key priorities in the modern global financial system."
At present, the Central Bank has begun issuing licenses to companies that have applied for cryptocurrency operations, and it is expected that digital currencies will soon be introduced in Azerbaijan. The issuance of digital currency will undoubtedly mark a new step toward the use of electronic or virtual currencies.

The expert emphasized that the Central Bank's licensing process indicates that the introduction of digital currency is imminent: "However, the use of cryptocurrencies as a payment method in Azerbaijan is not planned yet, as the appropriate mechanism has not been developed. Nevertheless, Azerbaijani citizens can own cryptocurrencies. They can purchase them online and use them through international online stores. Currently, there are no restrictions on this."

"So far, there have been no official statements from the Central Bank of Azerbaijan regarding the issuance of its own cryptocurrency or the circulation of a local cryptocurrency. This indicates that the introduction of digital currency is more relevant at this time, and the creation of a digital currency circulation system is planned in this direction. In the future, as the global circulation of cryptocurrencies or virtual currencies expands, discussions in this area are likely to intensify," he noted.

The economic expert also highlighted that approaches to cryptocurrencies vary in several developed countries. Some states view them as tools for credit manipulation, currency fraud, or money laundering : "As a result, some central banks do not support the expansion of cryptocurrency circulation. Therefore, it is necessary to conduct a comprehensive study and evaluation of both the creation and use of blockchain technology and cryptocurrencies, after which a decision in this area should be made."

Mr. Bayramov added that the position of the Central Bank of Azerbaijan on this issue remains conservative and is expected to remain so in the near future.

News.Az