The Iranian government plans to launch a pilot version of the crypto rial by the end of August.
The Iranian authorities announced preparations for launching the test project of the central bank digital currency (CBDC). This was reported by local media IFP News, citing Ali Salehabadi, Governor of the Central Bank of Iran (CBI). The launch is scheduled for the month of Shahrivar, which begins on August 23, according to the Gregorian calendar.
At the initial testing stage, the digital currency will be circulating in one region of Iran, which is not yet specified. At a later stage, it will cover the entire country. According to Salehabadi, the digital rial will differ from conventional cryptocurrencies, and the main purpose of its issue will be to replace the bills that are in circulation now. Iranian CBDC is not planned to be used for international transactions.
According to previously published information, the cryptocurrency will be based on distributed ledger and smart contracts. Authorized financial institutions will provide the technical infrastructure. The Central Bank of Iran will fully control the emission of the crypto rial. From the legal point of view, the CBDC circulation will be regulated by the same provisions as the circulation of traditional money.
During the testing, the CBI representatives are planning to monitor the financial and economic consequences of the introduction of digital currency, as well as analyze its impact on Iran’s monetary policy.
The first reports about preparations for launching the crypto rial appeared in April. Along with the announcement, local financial institutions received a list of rules under which the regulator plans to implement the digital currency. Recall also that about 90% of all central banks in late May 2022 were studying CBDCs and considering options for their implementation, according to the Bank for International Settlements (BIS).
