Abstract
The article scientifically substantiates the potential effects and practical implications of establishing and institutionalizing cryptocurrency exchanges in Azerbaijan, which serve as an important tool for diversifying the national economy, driving digital transformation, and increasing the competitiveness of the country’s financial system. The relevance of the study stems from the rapid deployment of digital financial technologies, the large-scale growth in interest in virtual assets, and the global trend toward transforming the crypto market into a regulated financial infrastructure. Based on a systemic approach, it is shown that, for Azerbaijan, a medium-sized economy dependent on traditional energy revenues, the development of digital finance creates important opportunities to create new investment niches, support the startup ecosystem, and expand the use of innovative tools in non-commodity sectors. The scientific novelty of the study lies in the comprehensive parameterization and structuring of the channels of influence of virtual asset legalization on macroeconomic dynamics. The authors prove that cryptocurrency exchanges can generate real economic benefits, expand the tax base, and strengthen financial monitoring (AML/CFT) only if a transparent licensing system, consumer protection, and segregation of client assets are in place. The macroeconomic parameters of Azerbaijan are verified using World Bank data for 2024, which indicate that the country’s nominal GDP was 74.32 billion USD and GDP per capita was 7,283.8 USD. It is established that the key risk of integrating crypto platforms is the threat of hidden dollarization of the economy due to the massive use of stablecoins pegged to the US dollar, which can significantly weaken the transmission mechanism of the Central Bank’s monetary policy, undermine confidence in the national currency, and provoke uncontrolled capital outflow. Keywords: cryptocurrency exchange, virtual assets, economy of Azerbaijan, fintech, financial regulation.
Keywords
cryptocurrency exchange; virtual assets; economy of Azerbaijan; fintech, financial regulation
Topics
Financial technology / Finansal teknoloji Banking / Bankacılık Cryptocurrency / Kripto para Economic Dynamics JEL G2 · Financial Institutions and Services / Finansal Kurumlar ve Hizmetler JEL H8 · Miscellaneous Issues / Çeşitli Konular JEL M3 · Marketing and Advertising / Pazarlama ve Reklamcılık JEL O3 · Innovation • Research and Development • Technological Change • Intellectual Property Rights / Yenilik • Araştırma ve Geliştirme • Teknolojik Değişim • Fikri Mülkiyet Hakları JEL R5 · Regional Government Analysis / Bölgesel Yönetim Analizi Cryptocurrency Exchange Virtual Assets Economy of Azerbaijan FinTech, Financial Regulation
JEL classification / JEL sınıflaması
- G21 Banks • Depository Institutions • Micro Finance Institutions • Mortgages
Bankalar • Mevduat Kurumları • Mikro Finans Kurumları • İpotekler - H83 Public Administration • Public Sector Accounting and Audits
Kamu Yönetimi • Kamu Sektörü Muhasebesi ve Denetimi - M31 Marketing
Pazarlama - O33 Technological Change: Choices and Consequences • Diffusion Processes
Teknolojik Değişim: Tercihler ve Sonuçlar • Yayılma Süreçleri - R58 Regional Development Planning and Policy
Bölgesel Kalkınma Planlaması ve Politikası
JEL codes: American Economic Association classification. Turkish descriptions are an unofficial translation. Türkçe açıklamalar gayriresmî çeviridir.
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- APA 7
Alakbarli, M. A., & Saldanlı, A. (2026). Potential Effects of Establishing Cryptocurrency Exchanges in Azerbaijan on Economic Dynamics. Ukrainian Journal of Applied Economics and Technology, 2026(2), 418–422. https://doi.org/10.36887/2415-8453-2026-2-78
- MLA 9
Alakbarli, M. A., and A. Saldanlı. "Potential Effects of Establishing Cryptocurrency Exchanges in Azerbaijan on Economic Dynamics." Ukrainian Journal of Applied Economics and Technology, vol. 2026, no. 2, 2026, pp. 418–422. https://doi.org/10.36887/2415-8453-2026-2-78.
- Chicago 17 (author-date)
Alakbarli, M. A., and A. Saldanlı. 2026. "Potential Effects of Establishing Cryptocurrency Exchanges in Azerbaijan on Economic Dynamics." Ukrainian Journal of Applied Economics and Technology 2026 (2): 418–422. https://doi.org/10.36887/2415-8453-2026-2-78.
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@article{alakbarli2026potential,
title = {Potential Effects of Establishing Cryptocurrency Exchanges in Azerbaijan on Economic Dynamics},
author = {Alakbarli M. A. and Saldanlı A.},
year = {2026},
journal = {Ukrainian Journal of Applied Economics and Technology},
volume = {2026},
number = {2},
pages = {418-422},
doi = {10.36887/2415-8453-2026-2-78}
}