The Central Bank of Iran (CBI) will soon start the beta phase of digital currencies. According to CBI executives, digital currencies will benefit the country by resolving financial controversies and achieving decentralization. Iran has been working on cryptocurrencies since 2018.
The Central Bank of Iran continues to strive to integrate cryptocurrencies in the country
The Central Bank of Iran will soon publish the national cryptocurrency for testing, according to a report by the Iranian Labor News Agency. According to the report, Mehran Mahramian, Deputy Governor of Information Technology at Commercial International Bank, revealed this. Moharamian adds that the CBI believes it should be launched because cryptocurrencies are a solution to the contradictions and decentralization of resources.
The Central Bank of Iran (CBDC) digital currency is called the Digital Riyal and is fixed to the national currency, the Rial. Its development began in 2018 after the Information Services Corporation (ISC), the executive arm of the Central Bank of Iran, responsible for operating the country’s network of payment services and banking automation, was commissioned to develop cryptocurrencies in the country. At that time, Syed Abu Talib al-Najafi, CEO of the International Study Centre, said that the digital riyal would be tested for the first time in commercial banks.
… In the first phase, the blockchain banking infrastructure will be awarded to Iranian commercial banks and used as tokens and payment tools for bank transactions and payments. He said.
So far, CBDCs have been developed using the open source Hyperledger Fabric technology. It is the first blockchain framework developed by Digital Asset, an industry startup based in IBM and New York. Hyperledger Fabric is now hosted by the Linux Foundation, a leading company in the Hyperledger blockchain consortium.
Looks like Iran has a big plan for cryptocurrency
The announcement of the cryptocurrency is just the latest push by Iran to expand its adoption of cryptocurrencies. Alireza Peyman Pak, Iran’s deputy minister of industry, mines and commerce and head of Iran’s Trade Promotion Organization, recently agreed that CBI will use cryptocurrencies like bitcoin for international payments. I made it clear. He added that the agreement can be implemented within two weeks at that time, and that cryptocurrencies will be widely adopted among trading partners, which will bring great benefits to the country.
Importantly, since the United States imposed severe sanctions on them, Iran has focused on alternative ways to boost international trade and boost its domestic economies. If cryptocurrencies are not allowed, in theory, they can avoid the difficulty of accessing US dollars in the international market due to sanctions and is often referred to as the adoption of Iranian cryptocurrencies. However, the state has not yet solved the problem of maintaining cryptocurrency adoption, as it allows bitcoin miners to operate locally. Bitcoin miners are currently facing a ban that will last until March.
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