The Central Bank of Iran (CBI) has informed banks and credit institutions about the rules related to the pilot launch of the digital rial, which is planned in the near future.
The Central Bank of Iran is preparing to launch the central bank digital currency (CBDC) and has informed national banks and credit institutions about the regulation rules for the pilot version of the digital rial. This is reported by local media and confirmed by the Iranian Chamber of Commerce and Industry press center.
The CBI’s main message is that the Central Bank will have full control over the digital asset, serve as its only issuer and determine the volume of issuance, maximum supply and distribution. The Iranian government also stresses that the CBDC’s pilot version will be fully compliant with the legal requirements of financial regulation of cash issuance.
Iranian publication Way2pay reports that the digital rial can only be used in the Islamic Republic of Iran, and the CBI will monitor its economic impact on the country’s economy. The CBDC pilot project will be managed in accordance with the monetary policy of the authorities.
However, financial technology experts do not consider the CBI’s explanations about the cryptocurrency mechanism sufficient and believe that Iran’s crypto sphere is still not clearly defined. Also, most representatives of the fintech industry express the view that the technical means of the digital rial implementation and the level of its control by the CBI may have a negative effect on the project’s outcome.
Recall that Nigeria, with its digital naira (eNaira) project, was the last country to introduce a CBDC so far. You can read about other countries’ experiences with learning and launching digital currencies in our materials under the CBDC tag.
