A strong infrastructure must be established for the creation of a common digital currency among Turkic states, Elena Bakhmutova, Chairperson of the Council of Kazakhstan's Association of Financiers, said in an interview with APA-Economics.
We present the interview regarding regional experience with the Azerbaijan Banks Association in the field of cooperation, digital assets, central bank digital currency (CBDC), and cybersecurity:
– What is the purpose of your visit to Azerbaijan, and what are your expectations from cooperation with the Azerbaijan Banks Association?
- The agreement signed today is the first step toward our future cooperation. We consider this collaboration very important for exchanging views on developments between Kazakhstan and Azerbaijan. What I heard at the forum aligns with the topics we discuss at our financial conferences. Perhaps Kazakhstan is somewhat ahead in these matters, but this could be of interest to our Azerbaijani colleagues, particularly in terms of exchanging ideas on anti-fraud centers, cybersecurity, and other areas.
– What work is currently being done in Kazakhstan regarding digital financial assets?
- Currently, these assets are not recognized as classic financial assets under our legislation. However, a special regime exists in this direction within the Astana International Financial Centre. At the same time, the National Bank has introduced a new legislative initiative, and the trading of digital financial assets will now become possible. These assets will be accessible both to financial institutions and to ordinary citizens. In parallel, the creation of licensed platforms for cryptocurrency trading is also planned. This will be open not only to banks but also to insurance companies and participants in the securities market.
– At what stage is the digital currency (CBDC) bank currency project in Kazakhstan?
– Yes, this is an ongoing project. The initial phase of this project, called the “Digital Tenge,” has already been completed. This currency is the digital version of paper money and is very useful in terms of more transparent management of public finances and tracking budget expenditures. This technology can also be used within the country, especially in remote areas with low internet connectivity.
In your opinion, can CBDC be implemented jointly among Turkic countries?
– Currently, this is the first step. China is a successful example in this field, and Kazakhstan’s experience can also be considered successful. However, for such an initiative, a strong infrastructure must first be established at the level of central banks. This infrastructure has already been built in Kazakhstan, and we expect significant development in the field of digital payments in the coming years.
– What challenges exist for Azerbaijan to enter this field?
– It is true that these technologies require significant financial resources. Building the infrastructure, implementing the technology, and conducting training are accompanied by high costs. In Kazakhstan, such projects are carried out under separate budget control by the government.
– What is the situation in the field of cybersecurity in Kazakhstan, and are there differences compared to Azerbaijan?
– In fact, this is a relevant issue for the entire world. Kazakhstan has special state bodies responsible for cybersecurity. Banks are at the forefront of this issue. The public mainly blames banks when any problem occurs, although sometimes the responsibility may lie with different parties. Cybersecurity is very important not only for the banking sector but also for the information systems of state bodies.
– How is the situation regarding fraud alongside cybersecurity?
– Fraud is a common problem for post-Soviet countries. With the increase in digital payments, these risks also rise. Today, more than 90% of payments in Kazakhstan are made digitally. Therefore, we have established an Anti-Fraud Center under the National Bank. This center works together with banks and telecommunications companies. Additionally, a special committee operates within the Financiers Association, the exchange of ideas and preventive measures are carried out in this area.
– What are the statistical indicators regarding cyberfraud cases?
– The government keeps this area under control. Although the overall scale is not large, concern about these cases is increasing. As the number of users grows, the risk also rises. Together with Visa, Mastercard, and other international partners, we are taking countermeasures in this field using artificial intelligence.
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