By Leman Mammadova
Azerbaijan is continuously working on the improvement of financial environment in the country by cooperating with foreign countries and institutions in this direction.
Financial Market Supervisory Authority of Azerbaijan (FIMSA) and the Central Bank of Russia have discussed the further opportunities of applying electronic money in Azerbaijan.
A meeting with Alla Bakina, the Director of the National Payment System Department of the Russian Central Bank, was held at the FIMSA within the framework of the “Financial and Digital Technologies Week”.
During the meeting, Bakina spoke about the legislative base in electronic payments in Russia, the reforms carried out, the money transfers between the countries, as well as projects implemented in financial literacy.
FIMSA, in turn, informed about measures taken to accelerate the digital transformation of banks and strengthen financial inclusion in the country.
The meeting focused on innovative payment solutions and application of electronic money in the country, stressing the necessity of mutual cooperation in the future.
Electronic money is a virtual currency through which all kinds of payments are made on the Internet. Electronic money is not a generally accepted means of payment; they exist only within a certain payment system. Electronic money can be in different currencies, they can be exchanged for real money and vice versa.
The functions of electronic money do not actually differ from ordinary banknotes or coins. Electronic money in a modern market economy successfully acts as a payment tool. Payment by electronic money has already become familiar in many areas: shopping on the Internet, paying utility bills, traveling in public transport, paying for television, using mobile communications, and much more.
Financial and digital technologies were also discussed at the 48th meeting of associate members of the European Banking Federation (EBF) organized by the Azerbaijan Banks Association (ABA) on May 20.
Chief Policy Officer of ABF Sebastien de Brouwer briefed the participants on the development trends in the banking and financial sector of Europe. Executive Director of ABA Yunus Abdulov, in turn, spoke about development trends in the banking sector of the country.
The agenda of the event included the innovations implemented in digitization, payment ecosystem development, bail realization and execution of court decisions. European banks shared their experiences in this direction.
As an important component of the dynamics of the economy’s development, digitization is one of the priorities for Azerbaijan. It is expected that as a result of digitization, Azerbaijan’s GDP will increase by 135 million manats ($79 million) in 2020.
Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
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