Based on a recent report the Central Bank of Azerbaijan (CBA) has made it clear that it has no plans to issue a central bank digital currency (CBDC) anytime soon.
CBDC Not in Sight
This was made known in a statement coming from the CBA’s first Chairman Alim Guliyev. He made this known recently in Baku. Guliyev has also made sure to state the bank’s stance when it comes to cryptos. He made it known that the bank is quite conservative with cryptos and it is extra careful when dealing with it. The reason he gave was that “the use of digital currencies and similar financial instruments comes with great risks”.
Money Launders are Exploiting Cryptos
Guliyev has also made a strong argument as regards why the CBA will not be launching a CBDC in the nearest future. His arguments were centred on the fact that the blockchain technology is anonymous. This anonymity has so far being exploited by money launders.
Based on a recent report, Elman Rustamov, the CBA chair has also warned residents of the country to be careful while engaging in any cryptocurrency related transactions. He warned that maximum caution should be exercised while dealing with them.
Recently, the IMF Chair Christine Lagarde made a speech at the Singapore Fintech Festival regarding CBDC. Through the speech, she urged countries to consider the benefits associated with issuing a CBDC. She also listed some of these benefits in her speech.
Based on a recent report, some countries have already started issuing their own CBDC. A good example of this is Venezuela. The South American country has launched its state-backed crypto, called Petro and the coin is now available for trade on six local exchanges.
Another country which is about to launch its state-backed crypto is Iran. A recent report made it known that the country has signed a contract of agreement with some Russian blockchain developer association.