Iran’s Central Bank will pilot a central bank digital currency (CBDC) on September 22, the Iranian Chamber of Commerce says Announce. The so-called “cryptocurrency” has been in the planning stage for several years.
The launch of the cryptocurrency rial was initially plan In November, the CBDC was designed to “help improve financial inclusion and serve as a powerful tool for the CBI to compete with other stablecoins globally,” according to the chamber of commerce. It added that the country’s experts are concerned about the readiness of businesses to use CBDC, and the public is concerned about digital The wallet’s understanding and the impact of the introduction on banks expressed concern.
Iran to start trial of encrypted rial tomorrow: The Central Bank of Iran (CBI) said on Wednesday that it will start a trial of the encrypted rial as a digital currency for banks from Thursday. https://t.co/6rWpGSkQJR pic.twitter.com/S9rDgEgjio
– Tehran Bazaar (@TehranBazaar) September 21, 2022
The cryptocurrency rial is also seen as a means of combating widespread corruption in Iran. The development of the cryptocurrency rial began in 2018, and the central bank has been promising to trial a CBDC throughout the year.
Al Jazeera Report The CBDC will run on the Borna platform, which was developed using Hyperledger Fabric, IBM’s open source distributed ledger technology platform. The news agency added that the bank will exchange paper rial for electronic rial. Since the platform is licensed, the central bank will choose banks to participate.
Borna was adopted in 2019 to help modernize the outdated Iranian banking system. According to Al Jazeera sources, the Borna platform will allow for fee-based financial services, although this will not be part of the current trial.
Related: Iranian Government to Cut Off Power to Legal Crypto Mining Equipment in the Country
Cryptocurrencies are banned for payments within Iran, but Iranians began using cryptocurrencies to pay for imports in August, leading Iranian businesses to worry about the lack of cryptocurrency regulation. The Iranian Blockchain Association has made similar calls in the past.