IBM to help in dig­i­tal trans­for­ma­tion of econ­omy

Azer News - - Front Page - By Narmina Mam­madova

The Cen­tral Bank of Azer­bai­jan (CBA) will co­op­er­ate with IBM in the blockchain tech­nol­ogy, Di­rec­tor of the In­for­ma­tion Tech­nol­ogy De­part­ment of the CBA Farid Os­manov said at the Azer­bai­jan-Ger­many Busi­ness Fo­rum on En­ergy and ICT in Baku on Oc­to­ber 9.

The Cen­tral Bank of Azer­bai­jan (CBA) will co­op­er­ate with IBM in the blockchain tech­nol­ogy, Di­rec­tor of the In­for­ma­tion Tech­nol­ogy De­part­ment of the CBA Farid Os­manov said at the Azer­bai­jan-Ger­many Busi­ness Fo­rum on En­ergy and ICT in Baku on Oc­to­ber 9.

Os­manov said that the pro­gram is fairly large and will be im­ple­mented in two direc­tions.

"The first di­rec­tion cor­re­sponds to the plans for dig­i­tal trans­for­ma­tion. This ini­tia­tive will be im­ple­mented within a five-year plan, which aims to meet the re­quire­ments and needs of the coun­try's econ­omy and bank­ing sec­tor."

"The sec­ond di­rec­tion is the de­vel­op­ment of a dig­i­tal iden­ti­fi­ca­tion sys­tem. We are work­ing to­gether on this with about 10 com­mer­cial banks and 15 gov­ern­ment agen­cies," Os­manov said.

Presently, as Os­manov noted, the Cen­tral Bank is work­ing on an ap­pli­ca­tion that al­lows com­mer­cial banks to col­lect, store and an­a­lyze in­for­ma­tion, and this is the di­rec­tion that the Cen­tral Bank will pay spe­cial at­ten­tion to.

"The use of blockchain tech­nol­ogy is stip­u­lated in the state pro­gram for non-cash payments. Cur­rently, a tech­ni­cal jus­ti­fi­ca­tion is be­ing pre­pared for the use of the blockchain plat­form. The main goal for com­mer­cial banks is to work with their cus­tomers and pro­vide them with timely ac­cess to the ser­vices pro­vided,” Os­manov said.

At present those who wish to open an ac­count in a bank need to visit the bank’s of­fice, which takes time, he said.

“We worked with FIMSA in this di­rec­tion and the re­sult was to en­sure prompt open­ing of an ac­count. Af­ter re­ceiv­ing per­mis­sion, com­mer­cial banks get ac­cess to this in­for­ma­tion through the state portal and an ac­count is opened for a few sec­onds. Also, the ad­van­tage is that bank cus­tomers can re­ceive cred­its at the ex­pense of avail­able in­for­ma­tion. From this point of view, as well as from the point of view of ef­fi­ciency and trans­parency, the blockchain plat­form can be use­ful. This is the first project. And it is pos­si­ble to say with high prob­a­bil­ity that a strat­egy can be formed through this project and there will be great re­sults from it," Os­manov stated

In ad­di­tion, the use of the blockchain plat­form will open up new op­por­tu­ni­ties for de­vel­op­ers, he con­cluded.

The Cen­ter for the Study and De­vel­op­ment of the Mar­ket for Cryp­tocur­rency and Blockchain Tech­nol­ogy was es­tab­lished in early April 2018. The Cen­ter fo­cuses on aware­ness-rais­ing, prepa­ra­tion of pro­pos­als on the reg­u­la­tion of the cryp­tocur­rency mar­ket and blockchain, as well as the pro­vi­sion of con­sult­ing ser­vices in this area.

A blockchain is a con­tin­u­ously grow­ing list of records, called blocks, which are linked and se­cured us­ing cryp­tog­ra­phy. Each block typ­i­cally con­tains a hash pointer as a link to a pre­vi­ous block, a time­stamp and trans­ac­tion data. Most of­ten, copies of block chains are stored on a va­ri­ety of com­put­ers and are in­de­pen­dently of each other pro­cessed by them.

The first blockchain was con­cep­tu­al­ized in 2008 by an anony­mous per­son or group known as Satoshi Nakamoto and im­ple­mented in 2009 as a core com­po­nent of bit­coin where it serves as the pub­lic ledger for all trans­ac­tions.

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