Tbilisi: “Digital currencies and fintechs should develop within a regulatory framework,” said Taleh Kazimov, Chairman of the Central Bank of Azerbaijan, during his speech at the GFTN-Tbilisi Financial Summit. He emphasized the significance of regulatory approaches in the development of digital currencies and the fintech sector, APA-Economics reports.
According to Azeri-Press News Agency, Kazimov pointed out that the complete digitalization of the retail banking sector is still in progress. He stressed the necessity of balancing innovation with regulation: “The digitalization of the retail banking sector requires a certain balance. That is, innovation and regulation should complement each other.”
Kazimov further explained that stablecoins, digital currencies, and blockchain-based solutions encourage innovations and startups. However, he underscored the need for development within a clear and responsible regulatory framework: “We often talk about stablecoins and digital currencies. They stimulate innovation and fintechs, but we are also regulators. Development should be governed not by ideas, but by responsible rules.”
He clarified that the aim is not to hinder financial technologies but to ensure their safe, sustainable, and systematic growth. Kazimov also mentioned that the use of artificial intelligence fosters innovations in the financial system. Nonetheless, this process should adhere to ethical principles and regulatory frameworks, considering religious perspectives: “Artificial intelligence opens up new opportunities for us, but the application of this technology requires responsibility. We offer financial institutions not only technological development, but also a value-based management approach.”