Central Bank of Azerbaijan (CBA) Affirms No Plans To Create Own Cryptocurrency Asset

Central Bank Of Azerbaijan Affirms That It Doesn’t Plan To Issue Its Own Crypto

The Central Bank of Azerbaijan has recently affirmed to the local media that it would not follow the worldwide trend to release state-baked cryptos. The bank has affirmed that the risks are too big for the institution to do it now.

Alim Guliyev, the first Chairman of the bank, has affirmed that digital currencies carry a great and not well-understood risk with them. Because of this, there are considerable risks for any institution that wants to become the issuer of central bank issued digital currencies (CBDC) within a foreseeable timeframe.

The chairman is someone that definitely has a negative view of cryptos as he affirms that they are risky and dangerous and that their “prime goal” is money laundering, a baseless accusation that is only grounded by a crypto phobia.

Independently from the chairman’s hate of cryptos, the chairman of the Azerbaijani Internet Forum has revealed recently that the government is implementing the blockchain technology and smart contracts to be used in the legal system of the country for public utilities.

Other Banks Also Comment On Cryptos Issued By Banks

The Bank of Israel has also created an independent study group that was set up by the governor in order to conclude the exploration of issuing CBDCs. While the study was not so critical of them as the other bank was, they deemed that it was not a great idea for the central bank to issue its own token because of the risks.

Finland has also seen its central bank studying the idea of using cryptos in an article called The Great Illusion of Cryptocurrencies. The report has affirmed that cryptocurrencies are “not real” and that they are accounting systems for non-existent assets.

It is clear that most banks are afraid of issuing CBDCs. While some strong and courageous banks are already moving forward plans to make them real, most of the others are, indeed, too scared to lead innovation. It is obvious that the risk is real as there is no framework for doing this yet, but it might give banks an edge to be innovations now. Unfortunately, most of them are not keen on the idea.

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