Azerbaijan’s central bank holds back on CBDC over monetary policy concerns

Azerbaijan has been cautious about developing a central bank digital currency, citing concerns over monetary policy and financial stability.

The Central Bank of Azerbaijan is not currently planning to issue a digital central bank currency but is actively following the experience of banks in other countries, Central Bank of Azerbaijan Governor Taleh Kazimov reported, citing local media.

Kazimov stressed at a press conference on July 31 that he was interested in the technological potential of CBDCs, but preferred to observe international developments and pilot projects before making any decisions.

“We do not plan to issue a digital currency at this time.”

Taleh Kazimov

Kazimov noted that the Central Bank is conscious in its approach, prioritizing a comprehensive assessment of the impact of central bank-backed digital currencies on monetary policy and financial stability.

“Project [CBDC] “It’s very interesting from a technological perspective and we study it regularly and watch what other central banks are achieving because there are questions about both monetary policy and the stability of the financial sector.”

Taleh Kazimov

The central bank governor also noted that no central bank globally has yet had a “successfully implemented” digital currency, and that all current initiatives remain in the pilot phase. He added that the central bank did not rule out the possibility of revisiting the issue once it receives answers to questions on “monetary policy and the stability of the financial sector.”

CBDCs are entering the mainstream, but not everywhere

The CBDC landscape has changed dramatically in recent years. China leads with its digital yuan, which has been widely tested and adopted across multiple states. Russia is also moving forward with its digital currency, planning a full-scale launch of its digital ruble by July 2025.

Meanwhile, the US remains hesitant, with discussions and considerations delaying any official move toward a digital dollar. As crypto.news previously reported, the Republican National Committee, led by Michael Whatley and Donald Trump’s daughter-in-law Lara Trump, has formally adopted an election platform opposing the creation of a central bank digital currency that aims to protect Americans’ right to transfer money “free from government oversight and control.”