Central Bank of Iran (CBI) to Launch a CBDC Pilot Program on Thursday
- According to the current CBI Governor, Ali Salehabadi, the bank had the necessary infrastructure and rules for a seamless CBDC.
- Earlier last month, the CBI published a document detailing goals, dimensions, threats and opportunities for developing a digital Rial.
- Global trade, including imports and exports to Iran, will be processed much faster, cheaper and securely through a digital Rial.
The Central Bank of Iran (CBI) has announced that it will launch a pilot program tomorrow to digitise the Iranian Rial (IRR). According to the CBI’s announcement, the sole purpose of this program is to turn Iranian banknotes into programmable entities.
The country has been digitising its economy following the general global trend and increased pressure from U.S sanctions. Meanwhile, the government seems to side with the Kremlin, particularly on the Ukraine war, by supplying lethal ammunition.
Iran’s CBI has been researching a Central Bank Digital Currency (CBDC) relentlessly focused on launching one soonest. In May last year, former CBI Governor Abdolnaser Hemmati said the CBI had already developed a “primary version” of a digital Rial. According to the current CBI Governor, Ali Salehabadi, the bank had the necessary infrastructure and rules for a seamless CBDC.
Earlier last month, the CBI published a document detailing goals, dimensions, threats and opportunities for developing a digital Rial. The bank understands the need for a well-structured digital Rial, especially one that meets global and local expectations.
CBI Taps on Digital Asset Industry to Expand Iranian Economy
The Iran economy is crucial for Western Asia and the surrounding region. Mainly because it borders major global economies like Turkey and India. Additionally, the country has direct access to the aquatic business through the Persian gulf to the south and the Caspian Sea to the north.
By tapping into the digital economy, Iran will be eliminating the barriers that have existed for years. Moreover, global trade, including imports and exports to Iran, will be processed much faster, cheaper and securely through a digital Rial.
Earlier last month, Iran made its first official import order of around $10 million using cryptocurrency. The country hopes to expedite the cryptocurrency adoption process to evade sanctions and increase its global trade.
“By the end of September, the use of cryptocurrencies and smart contracts will be widely used in foreign trade with target countries,” an official from the Ministry of Industry, Mine and Trade said.
Notably, Iran curbed its nuclear program to relieve U.S., EU and U.N. sanctions under the 2015 agreement. However, the former U.S. President, Donald Trump, cancelled the nuclear deal in 2018 and restored harsh sanctions. Consequently, Iran was forced to restart its nuclear program and find alternative ways to revive its economy.
Meanwhile, the United States is also looking to digitise the dollar to retain its global reserve currency status. China, on the other hand, announced on Tuesday that it is extending its e-CNY digital currency to four central provinces, including Guangdong. Nigeria also has a digital currency backed by the national currency, Naira.
Otherwise, El Salvador and the Central African Republic are the only countries using Bitcoin as legal tender as of publication time.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
