Azerbaijan is taking a cautious approach to the development of a central bank digital currency, citing concerns over monetary policy and financial stability.
The Central Bank of Azerbaijan hasn’t made plans to issue a central bank digital currency at this time, although it’s actively observing the experiences of banks in other countries, local media reports citing central bank governor Taleh Kazimov.
During a press conference on July 31, Kazimov expressed interest in the technological potential of CBDCs but emphasized a preference for observing international developments and pilot projects before making any decisions.
“We are not currently planning to issue a digital currency.”
Taleh Kazimov
Kazimov elaborated that the central bank is deliberate in its approach, prioritizing a thorough evaluation of the impact of CBDCs on monetary policy and financial stability.
“The project [CBDC] is very interesting from a technological point of view, and we look into it regularly and are monitoring other central banks to see the results that they have achieved, because there are questions about both monetary policy and the stability of the financial sector.”
Taleh Kazimov
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The central bank governor also noted that no central banks globally have yet achieved a “successfully implemented” digital currency, with all current initiatives remaining in the pilot phase. He added that the central bank doesn’t rule out the possibility of revisiting the matter once it gets answers to questions regarding “monetary policy and the stability of the financial sector.”
CBDCs go mainstream, but not everywhere
In recent years, the CBDC landscape has evolved drastically. China is leading with its digital yuan, extensively tested and adopted across multiple provinces. Russia is also advancing in digital currency, planning a full-scale launch of its digital ruble by July 2025.
Meanwhile, the U.S. remains undecided, with debates and assessments delaying any formal move toward a digital dollar. As crypto.news reported earlier, the Republican National Committee, led by Michael Whatley and Donald Trump’s daughter-in-law Lara Trump, has officially adopted an election platform opposing the creation of a central bank digital currency, aiming to protect Americans’ right to transact money “free from Government surveillance and control.”
Read more: Bank of England rolls out consultation paper for wholesale CBDC