Azernews.Az

Qabil Ashirov

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Unlocking the potential of the Middle Corridor—also known as the Trans-Caspian International Transport Route (TITR)—could accelerate the development of cross-border fintech, boost trade flows and deepen economic integration across the region, Azernews reports, citing the Asian Development Bank (ADB).

The ADB notes that the digitalization of the corridor will require coordinated agreements on cross-border data exchange and the management of digital infrastructure. These agreements, the bank says, must be supported by timely coordination and a cross-sectoral approach to be effective.

The report highlights the importance of mutual recognition of licenses, which could be aligned with approaches already being implemented under the “mBridge” and “Aperta” projects in the areas of cross-border trade finance and open banking. Both initiatives involve Georgia.

According to the ADB, fintech-based regional cooperation among Middle Corridor countries—Azerbaijan, China, Georgia, Kazakhstan, Turkmenistan and Türkiye—could become a new element of financial infrastructure within the broader framework of CAREC, the Central Asia Regional Economic Cooperation program.

“The Middle Corridor concept could, over time, evolve into an attractive fintech proposition for other countries in the region,” the report says. “The potential for fintech-based regional cooperation along the Middle Corridor may prove appealing even to states that remain skeptical about the tangible outcomes of cross-border fintech collaboration.”

The bank also suggests that identifying fintech-driven factors and measures within the Middle Corridor’s roadmap could serve as a starting point for establishing a cross-border regulatory sandbox. Such steps could help expand the circle of participating regional regulators and promote shared principles of open banking through relevant regional forums.