AZERBAIJAN CENTRAL BANK TO APPLY SMART CONTRACTS

The Central Bank of Azerbaijan is preparing to use smart contracts that “automate all processes”, not allowing “to make any changes in them”, said the Director of the Department of information technology of the CBA, Farid Osmanov.

During his speech at the international banking forum in Baku, Farid Osmanov noted that blockchain technology was chosen because it meets three attributes of information security: integrity, confidentiality and accessibility.

As Osmanov stated, the Central Bank of Azerbaijan “is already implementing a pilot project on the formation of a digital identification system, the purpose of which is to automate the services of individuals, legal entities and credit organizations”:

In November, it also became known that the Ministry of Justice of Azerbaijan is working on the introduction of smart contracts technology in the country’s municipal system, which should ensure transparency and prevent fraud in this area.

A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract in blockchain technology.