July 22, 2024

Azerbaijan will introduce a system on the blockchain to verify personal data

By the end of this year, the Republic of Azerbaijan plans to complete the development of a digital identification system,working on the blockchain, and in 2020 this system will be launched.

This was announced by the head of the departmentCentral Bank of Azerbaijan Information Technologies Farid Osmanov at the Fourth International Banking Forum in Baku. The conference was supported by the Central Bank of Azerbaijan (CBA), the Financial Market Supervisory Authority and the Center for Analysis of Economic Reforms and Communications.

In his speech, Osmanov spoke about the prospects of this system in terms of the security of personal data transmitted to credit organizations, as well as remote transaction processing.

Farid Osmanov noted that in the first stagesremote accounts will be open to legal entities and individuals. In the future, other banking services will be connected to the system, as well as automatic fund management in order to prevent the financing of terrorism and money laundering. In conclusion, Osmanov added that by introducing such a system on the blockchain, the Central Bank of Azerbaijan will completely switch to banking services in an open format.

Azerbaijan planned to introduce blockchain foridentification of personal data from 2018, when local authorities adopted the “State Program for the Expansion of Digital Payments”, designed for the period from 2018 to 2020. The program aims to coordinate technological advances in digital banking.

Azerbaijan did not plan in November 2018issue its own digital currency, and in May of that year, the government announced that the income received from crypto-fiat transactions would be taxed. However, last year, the CBA announced a partnership with IBM to introduce blockchain in public services.