The chairman of the Central Bank of Azerbaijan said that his agency, the main financial regulator, does not plan to issue its own digital currency, as it does not see prospects for its successful use.

The CBA does not plan to invest in research and issuance of a central bank digital currency (CBDC) until it sees sufficiently convincing results from a foreign central bank in this area.

“We are closely monitoring this issue. The CBA is studying what other central banks are doing and achieving. Digital currency raises questions both in terms of operations and the stability of the financial sector. Currently, no central bank has a successful product in this area,” said Taleh Kazimov, Chairman of the Board of the CBA, at a press conference.

The official added that for now, all CBDC projects remain in advanced stages and Azerbaijan’s financial regulator is ready to return to discussions as soon as it receives answers to its questions regarding monetary policy and the stability of the country’s financial sector with a functioning CBDC.

Two years ago, Olga Goncharova, Director of CIS Relations at Binance cryptocurrency exchange, said that the company sees great potential in the South Caucasus region and is ready to offer Azerbaijan its support in regulating crypto assets.