The government in Tehran is taking steps in preparation of the launch of Iran’s new digital currency, referred to as the crypto rial. In the coming two months, the Islamic Republic’s Monetary Authority hopes to start the pilot phase.
Central Bank Says Crypto Rial will be Different from Cryptocurrencies
Iranian authorities have taken the appropriate measures to initiate a pilot of cryptorial in the month of Shahrivar according to the Persian Calendar, said Ali Salehabadi (Central Bank of Iran) to reporters Friday.
Quoted by the English-language Iran Front Page news portal, the top executive emphasized that Iran’s digital currency will be different from the decentralized global cryptocurrencies. It is solely designed to “replace the banknotes that the people currently possess,” he noted.
Salehabadi further unveiled that the pilot project will initially cover just one of the country’s regions. While the cryptocurrency rial has been in development for some time now, it will eventually be introduced to other regions of Islamic Republic at a later, unknown stage.
The CBI announced in April it’s preparing for the upcoming launch of the central bank digital currency (CBDC), after informing Iranian banks and other credit institutions about the regulations that will accompany its introduction. The regulations detail the process of how it will be issued and distributed.
It will issue the cryptocurrency rial as the only issuer and determine the maximum supply. The coin will use a distributed ledger system, which according to reports is maintained by financial institutions authorized and capable of supporting smart contract support.
It will only be possible to transact within Iran under the same rules as banknotes or coins. The CBI will be responsible for monitoring the financial and economic impact of the digital cash and making sure it doesn’t negatively affect its monetary policies.
It was also stated by the central bank that the coin issued by the state will help establish the existence of cryptocurrency in the country. However, payments using bitcoin or the like aren’t allowed in these countries. Its pilot phase was announced at a time when many central banks across the globe are already working on their own CBDCs.
Is Iran capable of launching the pilot program for crypto rial? Do you believe so? Please share your thoughts in the comment section.
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