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The Central Bank of Iran (CBI) announced on Wednesday that it will begin the pilot of its crypto-rial this week. The news was made public by the Chamber of Commerce, Industries, Mines, and Agriculture.
Iran’s central bank announced that will commence the pilot launch of its Central Bank Digital Currency (CBDC) on September 22, 2022. The CBI calls the new digital currency the “crypto rial” and aims to convert traditional banknotes into programable entities. The currency is expected to remain pegged at a 1:1 ratio to the rial. The CBI in August published a draft document outlining the “goals, dimensions, threats and opportunities for the development” of the currency. Officials hope that the project will significantly increase their control over the national currency while simultaneously offering new opportunities to financial actors.
According to the Governor of the CBI, Ali Salenhabadi:
The bank has in place the infrastructure and rules for the crypto-rial. The cryptocurrency is planned as a new type of national currency, like banknotes and coins, but fully digital.
One of the main attractions of the use of a digital rial is its high level of security. The announcement from Iran’s Chamber of Commerce said:
Crypto-rial has been designed in a way that it is easy to track and even if the data on the smartphones are hacked, the crypto-rial can be tracked.
Iran Continues Foray Into Cryptosphere
Iran, which has been subject to comprehensive sanctions by the U.S., has turned to cryptocurrencies to attend to its economy. In August, the country placed its first crypto-funded import order to the tune of $10 million. It also has also opted for cryptocurrencies, instead of the dollar or euro, to pay for imports.
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