International rating agency S&P Global Ratings has published a new report on the digital transformation of Armenia’s economy, highlighting it as a key government priority.
According to the report, Armenia shows a high level of technological development in the region. Data from GSMA Intelligence for 2022 indicates that around 66% of the country’s population uses mobile services, the highest rate among Central Asian and South Caucasus countries. Moreover, 84% of users own smartphones, creating a strong foundation for digital transformation.
S&P Global Ratings analysts emphasize the significance of the newly introduced unified digital identification system "Yes ID," calling it an important step toward expanding fintech services and digital banking in the country.
The report particularly focuses on the development of digital payments. According to the Central Bank of Armenia, by the end of 2023, the country had over 700,000 active digital wallets, impressive for a population of approximately 3 million people.
S&P Global Ratings notes that Armenia's regulatory environment is becoming more structured. In 2022, the government, together with the Central Bank, developed a digital economy transformation program, which is now being coordinated by the newly established Agency for Information Systems.
Despite the lack of digital asset regulation, the report states that the Central Bank of Armenia has announced plans to create a regulatory framework for this sector. However, a 2023 study by the Central Bank on the prospects for digital currency revealed limited applicability in the country.
The agency’s experts also point out that the current regulatory regime does not pose significant risks to the banking sector, as authorities maintain a conservative approach toward the activities of non-banking financial institutions.
