CBA: More than 35 applications received under Sandbox regime so far

More than 35 applications have been received to date within the framework of the special regulatory regime (Sandbox) that ensures limited testing of innovative financial products and services under the supervision of the Central Bank of Azerbaijan (CBA), Fidan Tofidi, Director of the Financial Technologies and Innovations Department of the CBA, said at an event held in Baku on Azerbaijan's digital finance agenda, Report informs.

"This means 35 new products or ideas. Of course, not all of them have been accepted, but we consider this indicator quite positive. We are currently thinking about the next stage. The goal is not to limit applications to certain periods only, but to transition to a permanently open model. Thus, any interesting concept or innovative idea can be presented to the Central Bank at any time and evaluated by us," he noted.

Tofidi added that Sandbox is a testing environment and one of the most important steps taken for the development of the innovative ecosystem: "Imagine that until now, when new financial services or products emerged, there were various restrictions on presenting them to a wide audience. These restrictions were sometimes related to the lack of a regulatory framework, and sometimes to other obstacles. As a result, organizations faced certain difficulties in implementing those products and services."

He emphasized that the CBA grants temporary permission for a new product or service, creates a special testing environment, and tests it: "If the service shows successful results, conditions are then created for its widespread use. As a result of this, changes may be made to legislation, or entirely new rules and laws may be adopted. I believe that this mechanism is one of the most important steps for the development of the innovation ecosystem."