The Central Bank of Azerbaijan has revealed that the country will implement a blockchain-based ID system within the first quarter of 2020. The system is being developed to enhance the security and efficiency of Azerbaijan’s national ID.

Blockchain-based System For Open Banking

The central bank earlier announced its goal to institute a digital ID system, expressing confidence that the system would greatly increase the efficiency and security of personal data transfers between financial institutions. The next step is to allow corporate businesses, individuals, and other legal entities to remotely open accounts.

Farid Osmanov, Director of the Central Bank’s Information and Technology Department, said, “Other banking services will follow, and at the final stage it is planned to automate the monitoring of funds aimed at financing terrorism and money laundering.”

“The direct result of all this will be the transition of the CBA to open banking,” he added.

Blockchain: The Perfect ID Verification Solution

Azerbaijan is not the first country to use the blockchain technology to verify identification. On October, 30 South Korean-based firms collaborated on a blockchain-powered system to verify the identity of debtors and new clients opening accounts. Using a complicated decentralized ID system, the platform allows users to manage their accounts with their smartphones.

A similar type of system is expected to be created by Azerbaijan, whose central bank has recognized blockchain as the perfect solution. The country began developing such a system in 2018, launching the “State Program on Expansion of Digital Payments for 2018-2020,” which has been implemented by a number of firms and agencies.

Source: coingeek.com

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