Unlocking the potential of the Middle Corridor-the Trans-Caspian International Transport Route-could spur the development of cross-border fintech, boost trade flows, and deepen economic integration, the Asian Development Bank (ADB) said.
According to Report, the ADB notes that digitalizing the corridor will require coordinated arrangements on cross-border data exchange and digital infrastructure governance, supported by timely coordination and a cross-sectoral approach.
The bank adds that mutual recognition of licenses could play an important role and be aligned with approaches implemented under the mBridge and Aperta projects in cross-border trade finance and open banking. Both initiatives involve Georgia.
ADB believes fintech-oriented regional cooperation among Middle Corridor countries-including Azerbaijan, China, Georgia, Kazakhstan and Turkmenistan, as well as Türkiye-could emerge as a new element of financial infrastructure within the broader framework of Central Asia Regional Economic Cooperation (CAREC).
The bank also emphasizes that, over time, the Middle Corridor concept could evolve into an attractive fintech proposition for other countries in the region. The potential of fintech-focused cooperation along the entire route could be of interest even to states that are skeptical about the practical returns of interstate collaboration in fintech.
Identifying fintech-oriented drivers and measures within the Middle Corridor roadmap could serve as a starting point for establishing a cross-border regulatory "sandbox," expanding the circle of involved regional regulators, and promoting common open-banking principles through relevant regional forums, the ADB said.