Iran and its state-owned cryptocurrency have long been in discussion and it’s likely that Iran will soon launch a national cryptocurrency backed by fiat currency, Rial. As soon as the Central Bank of Iran (CBI) approves its application, this national cryptocurrency will be issued to Fintech organizations for testing purposes. However, the name of Iran’s new cryptocurrency is not yet revealed but the testing process to ensure internal and interbank settlements in on the go.
Why a state-owned cryptocurrency?
The state cryptocurrency is still in pilot phase and will mainly be used to run stress less financial payments, bank-to-bank settlements, and retail banking.
On top of all, the new cryptocurrency will be used in a direct transfer. Significantly, it will employ in a distributed and one-to-one framework” for transferring without the involvement of any institute, said country’s central bank, chief executive officer of Informatics Services Corporation (ISC) Seyyed Abotaleb Najafi.
Nevertheless, Najafi’s company is in contract with CBI to develop the national cryptocurrency whilst ensuring its use across banking system services and to evade the prowling US economic sanctions against the oil-rich Middle East country.
He moreover claimed that;
After getting Central Bank of Iran’s approval [it] will be used in the country’s banking system … in the first phase the blockchain banking infrastructure will be granted to Iranian commercial banks to use it as a token and payment instrument in transactions and banking settlement.
Launching this new cryptocurrency at earliest would be the most critical decision for Iran and probably help bypass certain sanctions through untraceable banking operations. Brigadier General Gholam Reza Jalali, head of Iran’s Civil Defense Organization points that state cryptocurrency is a “great opportunities”
What do you think, will CBI approves the new state-backed cryptocurrency? Or will Iran continues to fall out from the list of receiving services from cryptocurrency exchanges? Let us know