The Central Bank of Iran said it will launch its digital currency (CBDC) project in the near future.
According to Mostafa Ghamari Vafa, head of the CBI public relations department, the crypto-rial is a new type of the national currency, like banknotes and coins, though it is completely digital.
"In crypto-rial transactions the entire value is transferred without needing to go through interbank clearance. For example, shopkeepers that accept the crypto-rial will immediately receive the amount," Eghtesadnews quoted him as saying.
Crypto-rial reduces transaction time, is highly secure and at the same time it provides more space for fintech startups to develop, he added.
Ghamari Vafa did not say when the CBDC would make debut.
Earlier the CBI said it was developing a national cryptocurrency to ease financial services and payment in the domestic banking industry at the inter-bank and micro-banking level.
The regulator and its subsidiary Informatics Services Corporation will launch a pilot for the central bank digital currency (CBDC) after the Nowruz (Iranian New Year) holidays in March, the ISC chief said earlier this month.
"Informatics Services Corporation has developed the CBDC platform, and over the past two years the CBI has prepared the infrastructure," Aboutaleb Najafi was quoted as saying by the ISC website.
Based on what is known about the CBI’s crypto initiative, the digital currency is not designed to compete with global cryptocurrencies. Unlike bitcoin and other cryptos, CBDCs are centralized. It is not anonymous and in accord with the anti-money laundering requirements.
It considerably reduces money circulation costs, Najafi said. It will help improve financial inclusion and act as a powerful tool for the CBI to compete with other stable coins used globally.
Interest in CBDC has been growing globally in response to changes in payments, finance and technology, as well as the massive global disruptions caused by Covid-19.
A 2021 survey by the Bank of International Settlements of central banks found that 86% are actively researching the potential for CBDCs, 60% experimenting with the technology and 14% are deploying pilot projects.
So far about 55 countries are working on the proof of concept of CBDCs and nine have fully launched digital currencies. Nigeria is the latest with its e-naira.
According to the Atlantic Council, 14 countries, including China and South Korea, are now in the pilot stage with their CBDCs and preparing a full launch.
A study conducted by the High Council of Cyberspace shows total bitcoin trade in Tehran alone is in the region of 30-40 trillion rials ($130-174 million).
Another recent study by the Tehran Chamber of Commerce, Industries and Mining, showed 12 million Iranians have invested in digital currency.
