The Central Bank of Iran (CBI) announced the completion of the pre-pilot phase in developing central bank digital currency (CBDC). The initiative would bring the country closer to launching its digital rial.
The Monetary and Banking Research Institute (MBRI), the CBI’s research arm, released an official statement regarding the CBDC’s progress, stating that the project has achieved valuable milestones.
The CBDC project’s head, Mohammad Reza Mani Yekta, announced the news at a conference on electronic banking and payment systems. Moreover, he revealed that the CBI plans to expand the pilot phase’s scope gradually.
The CBI aims to implement the digital rial in the country’s payment system while ensuring the project adheres to established regulations.
Related Reading | Bank Of England Deputy Governor Highlights Importance Of CBDC Rollout
CBDC Aligns with Rial Banknote Regulations
The digital rial’s regulations will align with those established for rial banknotes, according to Mani Yekta. The CBDC infrastructure will replicate some blockchain features distributed among individuals and banks.
Additionally, the CBDC project will enable electronic wallets by all banks and credit institutions in Iran.
According to Mani Yekta, ten prominent banks in Iran have expressed their interest in joining the digital rial initiative. It is worth noting that well-known financial institutions such as Bank Melli, Bank Mellat, and Bank Tejarat were already part of the experimental phase of this project.
As Iran prepares to roll out its CBDC pilot, it is called “crypto-real.” Crypto real pegged at a one-to-one ratio to the country’s national currency, the Iranian Rial. Furthermore, The digital currency is built on Borna, created using the open-source enterprise blockchain, Hyperledger Fabric.
Anticipating Visit from Bank of Russia’s Governor
The news of Iran’s progress with its CBDC comes as the country prepares to host a visit from the Bank of Russia’s governor, Elvira Nabiullina. Equally important, Russia and Iran have reportedly worked together to create a gold-backed stablecoin to facilitate foreign trade.
Iran is making significant strides towards launching its CBDC, with the completion of the pre-pilot phase marking an important milestone.
The country’s efforts would promote financial inclusion and enhance competition with global stablecoins. Besides, the alignment of digital rial regulations with banknote regulations is a significant step. Additionally, the utilization of Hyperledger Fabric will enhance user security.
Iran’s plans to expand the CBDC pilot gradually demonstrate a cautious approach to ensure successful implementation.
The author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.