Blockchain Powered Justice System
The chairman of the Azerbaijan Internet Forum (AIF) reveals that the government will adopt blockchain solutions for its justice system. After implementation, Azerbaijan joins a growing list of nations and businesses that leverage blockchain’s open-source distributed ledger. Speaking to the trend news agency, Osman Gunduz states that blockchain technology is among several electronic services the government is considering to replace obsolete methods in the Ministry of Justice.
“The agency currently provides over 30 electronic services, and also there are about 15 information systems and registries. The registers of electronic notary, electronic courts; penitentiary service, the information systems of non-governmental organizations, the register of population, etc. can be mentioned. The planned project provides for the accumulation of all notarial documents in one case, has seemed interesting,” Osman Gunduz.
Verification of digital document’s authenticity has traditionally been an elusive process. However, big businesses and government agencies have successfully deployed blockchain technology and the results have been magnificent. About a month ago, Abu Dhabi’s Maqta Gateaway partnered with Belgium’s Mediterranean Shipping Company in a proof-of-concept for Maqta’s blockchain-based solution, Silsal. The technology facilitates seamless exchanges as well as verification and acknowledgment of documents between the ports.
Azerbaijan’s government looks to utilize blockchain technology in the notarization of electronic documents. The government will deploy blockchain’s open-source distributed ledger where all registry’s entries are permanently recorded and stored. Parties will be able to access the digital ledger. They are able to review the data but will not be able to interfere with it. This new blockchain system will foster transparency while largely curbing falsified entries.
According to Gunduz, the government is also considering deploying blockchain solutions in the management of the country’s natural resources. He says that, “in the future, the smart contracts will be introduced in the field of public utilities (water, gas and electricity supply). That is, this refers to the switch-over of existing contracts of citizens for utility services to smart contracts, which will ensure transparency and will allow to suppress the cases of falsification in this area. The citizens themselves will be able to independently control all these processes.
The aforementioned intended activities are not the first of their kind blockchain-related endeavors by the Azerbaijan’s government. In fact, the central bank of Azerbaijan (CBA) is undergoing a modernization process involving blockchain technology. The process is being spear-headed by the US tech titan IBM. IBM is in a 5-year deadline to help the nation’s central bank integrate blockchain technology to its existing infrastructure. IBM’s notable blockchain solution has been adopted by Walmart.
Taxation of Cryptocurrency
Meanwhile, as the nation prepares for blockchain powered economy, it is joining in the likes of US, South Africa, South Korea, Israel, Thailand and France among others to tax crypto trading revenues. There is also a possibility of creating a special zone for cryptocurrency dealings to attract crypto investors. Operators within the zone will not be subjected to taxation.