Iran to Pilot National Cryptocurrency in the Future

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Key Takeaways:

  • Iran to pilot national cryptocurrency in the future.
  • CBI Vice Governor for Information Technology Affairs Mehran Moharamian stated that the bank sees cryptocurrencies to resolve inconsistencies and decentralise resources.

The Central Bank of Iran (CBI) plans to launch the national cryptocurrency in a pilot phase in the near future, an official with the bank announced without providing further details. However, CBI Vice Governor for Information Technology Affairs Mehran Moharamian stated that the bank sees cryptocurrencies to resolve inconsistencies and decentralise resources. According to him, cryptocurrencies have recently begun to benefit many countries.

Informatics Services Corporation, the executive arm of the Central Bank of Iran in charge of running the country banking automation and payment services network, was tasked with developing a national cryptocurrency in 2018. Officials later stated that the Iranian cryptocurrency was created using the Hyperledger Fabric platform. It is a blockchain framework implementation and one of the Hyperledger Company’s projects hosted by the Linux Foundation.

Abutaleb Najafi, CEO of the CBI’s information services company, stated on Wednesday that the digital currency will be tested in a trial phase with banks, payment service providers, and consumers. Najafi said that “We carried out about two years of continuous work on the platform and on the infrastructure needed for CBI’s cryptocurrency, and now its pilot version is ready.”

The CBI hopes that the pilot platform will finally launch a digital version of Iran’s national currency, the rial. The new currency will be used as an alternative to physical cash, which authorities believe will encourage more people in Iran to use digitised payment infrastructure.

Najafi said that the CBI will need at least one more year to examine the economic, social and legal aspects of launching the digital rial. The project could entail massive risk assessment procedures. He said that “A document has been compiled in the CBI on the issue, and we have created the platform which would apparently mature within a year.”

During the trial period, state-run and private banks in Iran are expected to launch services that allow customers to open wallets and use the digital currency, according to the official. Iran’s efforts to develop an official digital currency come when the country is experiencing a surge in the use of cryptocurrencies such as bitcoin. The Iranian government has maintained a ban on cryptocurrency trading while cracking down on illegal cryptocurrency mining.

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Chaahat Girdhar

I'm Chaahat Girdhar, a journalist by profession who's turning her dreams into vision and vision into reality. I'm curious and have an appetite for gaining new knowledge. So I'm looking forward to learning things in the better way possible.