- Salehabadi said the pilot project would begin in one of the countries’ provinces.
- Only the monetary authority can issue and control the supply of crypto rial.
According to the Persian calendar’s Shahrivar month, which begins on Aug 23, Iranian officials are preparing to begin a pilot program for the crypto rial, Central Bank of Iran (CBI) Governor Ali Salehabadi told reporters on Friday.
When asked about the differences between an Iranian digital currency and other decentralized cryptocurrencies, the executive in question was cited by the English-language Iran Front Page news outlet as saying: It is created to “replace the banknotes that the people currently possess”, according to him.
Salehabadi also said the pilot project would begin in one of countries’ provinces. An undefined point in the future will see the introduction of the crypto rial to other parts of the Islamic Republic, which has been under development for some time.
Governments Aim to Create CBDCs and Control Unlike Crypto
Central Bank Digital Currencies (CBDCs), which the CBI will issue, were announced in April after the CBI informed Iranian banks and other financial institutions of the restrictions that would follow their implementation. They go into great depth about how it will be produced and disseminated. Only the monetary authority can issue and control the supply of crypto rial. It is built on a distributed ledger system managed by approved financial institutions and capable of enabling smart contracts, according to prior reports.
In accordance with laws controlling the issuance of banknotes and coins, the new Iranian money will only be accessible for use inside Iran. The CBI will monitor the financial and economic effect of digital cash and ensure that its monetary policies are not adversely affected.
Central bank officials said that state-issued money would play an important role in creating a cryptocurrency in the nation, where bitcoin and other cryptocurrencies are not permitted. Several central banks throughout the globe are exploring or are constructing their own CBDCs at this time.
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