We are currently at a stage of deep transformation of the financial system, where technology is no longer just a supporting tool but becomes its foundation. Digitalization, automation, and new forms of identity are changing not only how we pay but also how we trust money and each other. In such conditions, countries capable of creating transparent and flexible financial ecosystems gain a strategic advantage.

Azerbaijan is in a unique position: the combination of its geographical location, a developing economy, and an interest in digital technologies offers an opportunity not just to modernize domestic payments but also to become a connecting link between major financial markets. If approached systematically, with attention to security, accessibility, and international compatibility, the country can leverage new technologies to stimulate the economy and strengthen regional influence.

AZERTAC spoke with Alicja Teagle, a British expert in project management specializing in optimizing business processes, organizing operations, and supporting the growth of small and medium enterprises through virtual assistant teams.

– What changes are happening today in the world of digital finance?

– The financial world is experiencing a true revolution. First, identity is becoming more important than money itself. Previously, a card and PIN were enough to make a payment; now, transactions increasingly depend on who you are and what rights you have. Identity is becoming the new “rail” for all payments.

Second, money is becoming “smarter.” We are moving from simple payments to tokens and programmable value—money that understands context, knows rules, and can act in the interest of a specific community. It’s as if money has become a little “intelligent.”

The third trend is a “cold currency war.” Public and private digital currencies, as well as the infrastructure around them, are now used as instruments of influence and sanctions. Geopolitics is increasingly built into the very architecture of payments.

The fourth trend is agent-based finance. Artificial intelligence and smart agents will be able to compare prices, negotiate, and make purchases or transfers on our behalf. Banks will increasingly serve bots rather than people, acting as agents.

Finally, wallets are emerging that integrate everything in one place: identity, licenses, credentials, money, and digital assets. They will operate on mobile devices, online, and in spatial interfaces—users will be able to manage their finances conveniently and securely.

– What should Azerbaijan consider if the country decides to implement a digital currency?

– There are several key points. First, system resilience. Payments should work even without the internet, and delayed settlement should be possible in rural areas or during network outages. At the same time, reliable risk control mechanisms are essential.

Second, identity is more important than currency. Build a multi-layered system of identity data first, which allows transactions without unnecessary disclosure of personal information.

Third, prioritize compatibility over isolation. Develop token and identity system standards so that local pilots can later integrate easily with regional and international payment corridors.

Finally, clearly separate the roles of the state and the private sector. The central bank sets standards and provides oversight, while fintech companies and wallet developers compete on user convenience and innovation.

– Which practices could be particularly useful for the South Caucasus, including Azerbaijan?

– It is extremely important for the region to create a shared framework of trust. If countries agree to recognize each other’s digital identities and credentials, cross-border trade will be greatly simplified.

It is also worth developing tokenized trade rails: pilot projects for tokenizing invoices, guarantees, and customs duties can accelerate settlements and reduce bureaucratic burdens on businesses.

Equally important is risk-based access. For new participants, simplified KYC can be applied with restrictions, gradually expanding rights and limits as trust grows. This approach allows as many people and businesses as possible to join the digital financial system.

– What steps can help Azerbaijan improve financial accessibility, especially in rural areas?

– One of the most effective methods is offline-capable wallets and a local agent network. This means people can use digital currency even without the internet, while local merchants or agents provide cash-in and cash-out services.

Onboarding through credentials is also important. For example, to access financial services, it may be sufficient to verify residence, membership in a cooperative, or eligibility for a subsidy—without visiting a bank.

Additionally, smart wallets can guide users on how to manage income, optimize transfers, savings, and bill payments—particularly useful for people with irregular income.

– How should Azerbaijan build a digital financial ecosystem?

– At the center of the ecosystem should be a national wallet. It should store money, identity, licenses, vouchers, business credentials, and operate on open APIs so that other services can integrate easily.

It is crucial to embed privacy into the architecture. Use selective data disclosure, zero-knowledge proof protocols, and regulate not just data storage but also its usage.

Preparation for working with bots and AI agents is also necessary. This includes coordinated API access, request limits, built-in duty-of-care obligations, and dispute resolution mechanisms if “my bot pays your bot.”

– Can Azerbaijan become a bridge between East and West?

– Yes, the country has significant potential. If Azerbaijan can standardize trust, it could become a neutral hub for digital identities and tokenized trade settlements. This would enable servicing transit routes between East and West without taking sides in the “cold currency war.”

It is more important to occupy a niche than to try to scale to everyone at once. For example, it could specialize in digital asset compliance, secure custody of trade tokens, and providing transparent arbitration services.

– What international cooperation would be useful?

– First and foremost, mutual recognition of identity data and credentials. This reduces repeated KYC/KYB procedures for individuals, small businesses, and AI agents.

It is also useful to launch cross-border pilot projects for offline CBDCs and tokenized trade with pre-agreed settlement rules.

Finally, supervisory boards for wallets and agents are important to jointly develop rules for security, agent conduct, and incident response.

– How important are global and regional alliances?

– They are absolutely essential. Money and identity are networked products: the larger the network and the higher the trust, the more valuable they become. Shared standards and alliances allow innovation to spread safely and enable small markets to compete with major players on the global stage.