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Iran Will Not Allow Crypto Payments – Prepares to Pilot Digital Rial

Iran Will Not Allow Crypto Payments – Prepares to Pilot Digital Rial – According to a high-ranking government official, cryptocurrency will not be accepted as a form of payment in Iran. His comments came after Iran’s Central Bank established new regulations for the issuance of digital currency in the country. These, on the other hand, are intended for its own crypto rial, the pilot phase of which might begin soon.

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Bitcoin and other cryptocurrencies will not be accepted as legal money in the Islamic Republic of Iran. Reza Bagheri Asl, Iran’s deputy minister of communications, stressed the following when discussing regulatory issues relating to the storage and trade of cryptocurrencies:

“Payments made with bitcoins are not accepted.”

Also Read: Bank of Spain Reminds Public Cryptocurrency Purchases Can Be Blocked in Certain Cases

The government official was responding to the Digital Economy Working Group’s recent resolution on crypto assets. He stated that the usage of any foreign currency is outside of Iran’s sovereignty and in violation of the country’s monetary and banking laws.

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“As a result, there will be no restrictions acknowledging payments with cryptocurrencies which do not belong to us,” Bagheri Asl explained, according to the Iranian financial news blog Way2pay. He stressed that because Iran does have its own national cryptocurrency, “no payments will be conducted with non-national cryptocurrencies.”

The deputy minister went on to say that, in order to protect Iranian residents, the country’s digital asset exchange will be governed by a set of rules similar to those that govern the stock market as well as other currencies. “Cryptocurrencies must be managed, and banking systems must be regulated,” he continued.

Allowing Iranian businesses to use decentralized digital currencies for transactions with overseas partners as a strategy to avoid Western financial sanctions has been contemplated by Tehran officials in the past. The debut of the digital form of the country’s fiat currency, the rial, is what they’re concentrating on right now.

The Central Bank of Iran recently notified banks as well as other credit institutions about legislation governing the crypto rial, which has been in development for some time. They apply to the central bank’s digital currency minting and distribution. The CBI will be the sole issuer, and the maximum supply will be determined by the CBI.

Also Read: Survey Shows Metaverse Will Be Most Popular Place to Buy and Trade Cryptocurrency

The digital currency will be built on a distributed ledger system which will be managed by authorized financial institutions and capable of conducting smart contracts, according to Way2pay. The CBDC’s infrastructure and guidelines have been approved, and it’ll be piloted in the near future, according to the publication.

According to the report, the crypto rial would be issued within the same legal framework that governs the issuance of banknotes and coins. The CBI will keep track of the digital currency’s economic impact and manage it in accordance with the authority’s monetary policy. Users would be able to conduct business with the CBDC exclusively within Iran’s borders.

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