Central Bank of Iran is soon to pilot Digital Rial

Central Bank of Iran is soon to pilot Digital Rial

BUSINESS/ECONOMY | Oct 19, 2021 | WOZINGA NEWS

Central Bank of Iran is soon to pilot Digital Rial

  • Central Bank of the Islamic Republic of Iran is soon to launch the pilot test of national currency, CBI governor stated.

By Marielle Petere Wozinga Staff

Central Bank of Iran is soon to pilot Digital Rial

Central Bank of Iran will soon conduct the pilot stage of the national cryptocurrency, the Governor of the Central Bank of Iran announced on Sunday. 

Ali Salehabadi is the newly appointed Governor of CBI, officially named Central Bank of the Islamic Republic of Iran. The Financial Tribune relayed the statement of Salehabadi.

Central Bank of Iran: Report

According to the report, Salehabadi mentioned the upcoming pilot of Digital Ria, yet he did not provide additional details. He also said that central bankers examine the risks and benefits of implementing digital currency. 

But then, the “crypto-rial” pilot needs the approval of the Money and Credit Council. Based on the IRIB News quoted statement, Salehabadi confirmed that it would begin as long as the Council agrees. 

As for the development of the national digital currency, the Information Service Corporation is the assigned provider. Iran revealed the central bank digital currency improvement plan in 2018. 

Moreover, the executives of the company disclosed the Hyperledger Fabric platform. The crypto-rial utilizes the platform. 

In this matter, CBI officials clarified that digital rial is not like bitcoin or ether. Since it is on a private blockchain, public mining is prohibited.

Iran Rules: Crypto trading and mining

Speaking of mining, Iran’s government legalized digital currency mining in July 2019. Authorized miners must adhere to the rules. 

However, former President Hassan Rouhani imposed a three-month ban on virtual currency mining on May 26, 2021. It happened due to widespread power outages while the country experienced extreme heat last summer. 

When President Ebrahim Raisi took over the position, cryptocurrency mining operations resumed on Aug. 3, 2021. Based on the estimation across the world, Iran has 4.5% to 7% digital currency mining operations.    

In addition, the government of Iran still prohibits any crypto trading. But, CBI has allowed banks and licensed money changers to use the virtual currency mined through the authorized miners in the country to pay for imports. 

 

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