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Iran’s central bank signals the imminent launch of the digital rial, a central bank digital currency (CBDC), to streamline payments and bolster international financial integration despite sanctions.
Iran’s Central Bank Sends Clear Signals on the Digital Rial Breakthrough
Central Bank of Iran (CBI) Governor Mohammad Reza Farzin discussed the digital rial, Iran’s central bank digital currency (CBDC), during the 11th annual conference on modern banking and payment systems, as reported by Tasnim News Agency. He described the digital rial’s operationalization as a key milestone in modernizing the nation’s financial systems and confirmed its upcoming launch.
Farzin also highlighted the importance of the conference in shaping banking policies, noting that insights shared would inform strategic decisions. “We will incorporate the insights shared here into our policymaking,” he stated. Additionally, he praised Iran’s digital infrastructure, citing the Shetab payment network as one of the region’s most efficient systems, capable of processing transactions in under two seconds.
On the digital rial, he confirmed its imminent launch, stressing its role in advancing modern banking practices. He noted:
Developing innovative banking systems is a central bank’s responsibility worldwide, and we are determined to fulfill this duty in Iran.
This development follows a pilot program initiated in June on Kish Island, where banking customers and tourists utilized the digital rial for transactions via digital wallets, eliminating the need for physical cash or bank cards. The digital rial is designed to operate independently of traditional bank accounts, facilitating direct transfers between users without interbank settlement processes. This approach aims to streamline payments, bolster security, and support the growth of Iran’s digital economy.
Addressing challenges posed by sanctions, Farzin discussed the implementation of the “ACU-MIR” system, a platform designed to enable financial transactions with countries like India and Pakistan. He stressed:
Sanctions remain a significant hurdle, but we’ve made notable strides in recent years … We’ve replaced SWIFT with this platform and strengthened our ties with BRICS, which is shaping global trade with a strategic plan through 2025.
Farzin detailed efforts to integrate Iran’s Shetab network with Russia’s MIR system, facilitating cross-border payments. “Recently, Shetab connected with Russia’s MIR, and several banks are now operational on the system,” he explained. Future plans include enabling Russian tourists to use Iran’s payment systems this winter and providing Iranian tourists access to Russian point-of-sale systems by 2025. Farzin expressed optimism about these initiatives as steps toward strengthening international financial integration.