Iran’s central bank soon plans to launch a pilot phase of its digital currency project, an official revealed. The Islamic Republic wants to join a growing club of nations that want to take advantage of having a sovereign coin, while it also seeks to implement blockchain technology in other areas.
Iran begins state-backed digital currency trials
Iran’s Monetary Authority intends to pilot its central bank digital currency (CBDC) in the near future, the Iranian Labour News Agency (ILNA) quoted a senior representative of the financial regulator as saying. The news comes four years after the project was originally announced.
According to a statement by Mehran Moharamian, deputy head of IT at the Central Bank of Iran, CBI Think of digital currency as a solution to some inconsistencies and scattered resources. He noted that other countries have already started to benefit from a CBDC.
Moharamian did not provide specific details about the start of the pilot phase. Authorities in Tehran in 2018 tasked the country’s information services company with developing a “national cryptocurrency.” The CBI unit is running the country’s network of banking automation and payment services.
Later, the company explained that the Iranian digital currency was designed using the Hyperledger Fabric platform, a blockchain framework implementation and one of the Hyperledger projects hosted by the Linux Foundation.
Blockchain promises to revive Iranian stock market
Although Iran’s crypto space remains largely unregulated — except mining — Another report this week suggested that officials have been looking for ways to use the technology that underpins cryptocurrencies like bitcoin.
Majid Eshqi, head of the Iranian Securities Exchange Organization, recently commented that the Iranian capital market should really consider the use of blockchain technology as it can help solve some of the major needs of the stock market and create new opportunities for its revival. Quoted by SENA and the English-language business daily Financial Tribune, he elaborated:
In two years at the latest, we will be forced to use blockchain technology…and soon we will start tokenizing physical assets and stocks that can be easily traded on the new platform.
He added that now is the time to consider the potential of blockchain technology to solve some existing problems, such as shareholder identity verification, and start infrastructure processes.
In early January, Iranian media disclose Tehran will allow local companies and overseas partners to use cryptocurrencies in international settlements. Central banks and governments of sanctioned countries have reportedly approved the adoption of a mechanism to facilitate digital currency payments in the field of foreign trade.
Do you think Iran will continue to explore ways to implement cryptocurrency and blockchain technology? Let us know in the comments section below.
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