Cryptocurrency

16/11/18 06:27 UTC-4

Central Bank of Azerbaijan rejected the possibility of issuing a national cryptocurrency

The Central Bank of Azerbaijan (CBA) said that it does not intend to issue cryptocurrency with state support, also known as the digital currency of the Central Bank (CBDC), CNN reports.

Speaking to journalists in Baku on November 15, the first chairman of the CBA, Alim Guliyev, stated that the Bank treats the crypto-market conservatively. Attitudes are built based on the conviction that the use of digital currencies and similar financial instruments is "fraught with great risks".

According to Guliyev, cryptocurrencies are too often used for money laundering, which is the main reason that the Central Bank does not intend to launch CBTC altcoinAltcoin
– are the common name for all cryptocurrencies (except Bitcoin).Details
in the near future.

Recall that a few months ago, the CBA Chairman Elman Rustamov issued a warning to the Azerbaijani population, urging them to be careful regarding "risky and dangerous" cryptocurrencies.

"The Central Bank of Azerbaijan is very cautious about cryptocurrencies and believes that such financial instruments involve high risks (...) considering the risks, the CBA does not plan to issue its cryptocurrency" – Alim Guliyev.

The issue of state-supported cryptocurrency remains controversial, provoking conflicting judgments: sometimes even from the same financial bodies. For example, Guliyev’s statement came just a few hours after IMF chairman Christine Lagarde gave a speech at the Fintech Singapore festival, where she called on Central Banks around the world to consider the issue of "national" cryptocurrencies.

According to Lagarde, the release of CBDC can increase the security of payments, reduce the burden on the financial system, reduce the risk of banking operations, and even ensure financial inclusion in less privileged areas.

Editor: Yuliya Soroka

See also: "Historical Day for Bitcoin Cash"

#Azerbaijan #cryptocurrency #bank #Alim Guliyev

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