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Azerbaijan says No to the Use of cryptocurrency as a means of payment

Dec 06, 2017 Posted /  6576 Views

Azerbaijan says No to the Use of cryptocurrency as a means of payment

Central Bank Chairman Revealed Azerbaijan stand on Cryptocurrency

The chairman of the Azerbaijan central bank Elman Rustamov recently stated that cryptocurrencies continue to be a very dangerous tool for investment. He clearly said that the central bank is still conservative on the technology for the meantime while waiting for necessary legislation to take effect before the bank can get its clear standpoint on the matter.  According to the governor, the Central bank will monitor the international trends in blockchain and cryptocurrency regulation before finally developing their own regulatory framework for cryptos and other blockchain related technologies. He was quoted saying,

“The central bank will study cryptocurrency and related technologies and its possible future use for the financial and banking sectors of this country. We will explore all possible future applications of blockchain technologies for the future. Negotiations are ongoing with major consulting firms. Our aim is to create a stable technological and legislative infrastructure before introducing this technology”

This makes it clear that the country has deferred the use of cryptocurrency inside Azerbaijan to a future date when all the regulatory framework required to combat the presumed side effects of the technology are in place.

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The central Bank Anticipated to Develop Blockchain Technology in the Future.

According to the first deputy chairman of the Azerbaijan Central Bank, Alim Guliyev, the central bank may explore possibilities of adopting blockchain technologies to be deployed in the countries payment system and Electronic Identity verification. This comes following a meeting with Swiss officials on the matter by the end of last month.

A possible blockchain services developed by the central bank would become the hub for cryptocurrency in the country, although the core values of cryptocurrencies like decentralization and anonymity will be greatly compromised. It is clear that a complete ban on cryptocurrency may not be possible to be enforced by any government as the technology was developed to resist government sensor. Many countries are raising eyebrows on cryptocurrencies fearing that the technology can be used against the fundamental financial and political goals of the nations with the majority of the countries opting for regulatory frameworks to govern the use of the technology.

According to a business insider report published in October, there are around 1100 cryptocurrencies at the moment being traded on the global financial markets. The prices of the cryptocurrencies vary from approximately a quarter of a dollar to thousands of dollars for the case of Bitcoin priced at over $11,000.

Azerbaijan is now added to the list of countries that have rejected to recognize cryptocurrencies citing different claims avoiding the technology to be adopted as a legitimate means of payment. Among the list of countries who are still hesitating on legalizing cryptocurrencies are Indonesia, China, Vietnam, Russia among others.

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Tags: Elman Rustamov Azerbaijan Use of cryptocurrency payment

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