Azerbaijan has potential to emerge as regional payments hub, CBA says

Azerbaijan has the capacity to develop into a regional payment hub in the years ahead, Ramil Mahmudov, Deputy Director of the Central Bank of Azerbaijan’s Department of Payment Systems and Product Inclusivity, has stated.

Speaking at an event in Baku focused on Azerbaijan's digital finance agenda, he said this is a process that requires the implementation of long-term and extensive work, Caliber.Az reports, citing local media.

According to him, proper regulation and support for innovations will create favourable opportunities to achieve the goal.

“The formation of an adequate regulatory and legal framework for the introduction of new products and services both domestically and in international markets is also one of the key conditions," he noted.

Mahmudov made it clear that the CBA is working to expand the reach of the country's payment products into foreign markets.

He said CBA seeks to ensure that payment solutions developed in Azerbaijan, along with services provided by the country's fintech companies and banks, are widely used abroad.

"A number of projects are currently being implemented in this direction. One of them is cross-border payments, that is, integration with the payment systems of other countries. I believe that significant results will be achieved in this area in the near future,” he added.

“Statistical indicators also demonstrate that the development dynamics of payment systems in the country are quite high, and a significant part of the market has already been covered. At the same time, there is still great potential. In particular, the integration of mutual payment systems with countries with which Azerbaijan has the most trade and the highest tourist flow would be expedient," Mahmudov explained.

By Bakhtiyar Abbasov