Iran Aims to Roll Out Pilot Version of Crypto Rial Within 2 Months – The Central Bank of Iran (CBI) Governor, Ali Salehabadi, informed reporters on Friday that the Iranian government is making the required preparations to introduce a pilot program for the crypto rial as of the Persian calendar month of Shahrivar, which begins on August 23.
The top executive stressed that Iran’s digital currency will be distinct from the decentralized global cryptocurrencies in a report by the English-language Iran Front Page news portal. He pointed out that it is only intended to “replace the banknotes that the people now own.”
The pilot project would initially only cover one of the country’s regions, Salehabadi further said. The long-in-the-making crypto rial will eventually be implemented in other regions of the Islamic Republic at a later, unannounced period.
After notifying Iranian banks as well as other credit institutions about the regulations that will go along with the introduction of the central bank digital currency (CBDC), the CBI declared in April that it is getting ready for the imminent launch of the currency. They describe the distribution and minting processes.
The crypto rial’s maximum supply will be set by the monetary authority, which will also be the sole issuer. According to earlier reports, the coin is built on a distributed ledger system that can enable smart contracts and would be maintained by accredited financial institutions.
The new Iranian currency will be minted in accordance with the regulations controlling the issuance of banknotes and coins and will only be usable for domestic transactions. The CBI will be in charge of keeping an eye on the financial and economic effects of digital money and making sure they don’t have a detrimental influence on its monetary policies.
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The state-issued coin will help establish cryptocurrency in the nation, where it is currently illegal to make payments using bitcoin and similar cryptocurrencies, the central bank further stated. The world’s central banks are all either exploring or working on their own CBDCs as of the time of the announcement of its pilot phase.