According to a senior government official, Iran won’t recognize cryptocurrency as a payment method. The Central Bank of Iran had just announced guidelines for the issuing of digital currency in Iran. These are meant, however, for its own “crypto rial,” the pilot phase of which should start in the near future.
Iranian minister declares that accepting cryptocurrency payments for payment is unacceptable
In the Islamic Republic of Iran, cryptocurrencies such as bitcoin won’t be considered legal tender. Discussing regulatory matters related to the storage and exchange of cryptocurrencies, Iran’s deputy minister of communications, Reza Bagheri Asl, emphasized:
Payments with cryptocurrency are not accepted by us.
A government official commented on the Digital Economy Working Group’s latest resolution regarding crypto assets. His comment was made to the Digital Economy Working Group’s latest resolution regarding crypto assets.
“So, we will by no means have any regulations recognizing payments with cryptocurrencies that do not belong to us,” Bagheri Asl elaborated, quoted by the Iranian financial news portal Way2pay. “Iran has its own national cryptocurrency, so no payments will be made with non-national cryptocurrencies,” he insisted.
According to the deputy minister, the rules for digital assets exchange will mirror those in place in Iran’s stock and currency markets. “Cryptocurrencies must be regulated and banking systems must be observed,” he added.
Central Bank of Iran Releases Information About Digital Rial Project
The Iranian authorities considered in the past allowing Iranian companies to use decentralized digital currency to settle with foreign partners. This was to avoid Western financial sanctions. What they are focusing on at the moment, however, is the launch of the digital version of the nation’s fiat currency, the rial.
The Central Bank of Iran (CBI) has recently informed banks and other credit institutions about regulations related to the “crypto rial,” which has been under development for some time. These regulations apply to minting and distribution central bank digital currencies (CBDC). CBI will issue the currency as its only issuer, and it will decide on how much supply is available.
Way2pay says the digital currency uses a distributed ledger that can be used to implement smart contracts. It will be kept by licensed financial institutions. It has been approved by the CBDC guidelines and infrastructure. The publication will soon be made public.
According to the report, the crypto rial will not be released under any legal restrictions regarding the publication of coins and banknotes. The CBI will be monitoring the economic impact of the digital currency and managing its effects in accordance with the authority’s monetary policy. The CBDC will only allow transactions within Iran.
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