Azerbaijan Launches Digital Manat Central Bank Currency Pilot

The Central Bank of Azerbaijan has launched a pilot program for the digital manat, joining the global wave of central bank digital currency development. The initiative represents a significant step in Azerbaijan's broader financial digitization strategy aimed at modernizing payment systems and enhancing financial inclusion.

The pilot program involves select commercial banks and payment service providers testing digital manat transactions in controlled environments. Initial focus areas include retail payments, person-to-person transfers, and government disbursements.

Digital currency infrastructure builds on Azerbaijan's existing electronic payment networks. The country has seen rapid growth in digital payments, with mobile banking adoption increasing substantially across urban and rural populations.

Central Bank officials emphasized that the digital manat would complement rather than replace physical currency, providing an additional payment option particularly valuable for populations with limited banking access. The technology enables instant settlement, reduced transaction costs, and enhanced transparency.

Azerbaijan joins regional peers in exploring CBDCs, with Georgia also examining digital currency options. The developments reflect Caucasus nations' commitment to financial innovation and integration with global digital payment trends.