Iran to start public pilot for digital currency on Kish Island

As an analyst with a background in financial technology and geopolitics, I find Iran’s move towards launching a central bank digital currency (CBDC) both intriguing and challenging. The digital rial, as it is called, has the potential to modernize and simplify domestic transactions in a region known for its complex payment infrastructure.


As a financial analyst, I’m excited to share that Iran’s Central Bank is initiating a pilot program for a digital rial, which will allow banking customers to conduct cashless transactions. This innovative move towards digital currency is expected to streamline financial exchanges and enhance the overall efficiency of the Iranian banking system.

As a financial analyst, I would express it this way: I, as an observer, have noticed that the Central Bank of Iran (CBI), also recognized as Bank Markazi, has recently announced the commencement of the operational stage for its digital currency named digital rial. This move is aimed at enhancing and streamlining domestic transactions by bringing them into the modern digital era.

As an analyst, I’ve reviewed a press release from crypto.news where the Central Bank of Iran (CBI) announced plans to launch a digital rial pilot program in July. This initiative will enable banking customers and tourists on Kish Island to conduct transactions using digital wallets and QR codes. The implementation of this digital currency is expected to bolster the payment infrastructure in the region, ultimately leading to the creation of novel business models, particularly within e-commerce and the digital economy.

Since 2022, Iran’s central bank has been conducting trials of its digital currency in a restricted phase, initiated in June 2023. The Central Bank of Iran (CBI) asserts that this state-managed digital currency brings enhanced payment security and offers a more streamlined experience compared to conventional card payment systems.

In February, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) placed sanctions on a group of entities believed to have assisted in the illicit exportation of American goods and technology to Iranian buyers from over two dozen US companies.

The Iran-based Informatics Services Corporation (ISC), which is a subsidiary of the Central Bank of Iran and is responsible for creating the central bank digital currency platform (CBDC), was among those recently sanctioned by OFAC. According to their statement, ISC was penalized because it provided substantial assistance, financing, or technological support to the Central Bank of Iran in connection with the development and implementation of the CBDC.

According to crypto.news, ISC initiated the development of the digital rial back in 2018, utilizing Hyperledger Fabric – a blockchain platform managed by the Linux Foundation.

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2024-06-18 15:22