Iran to start ‘crypto rial’ CBDC trial despite possible lack of infrastructure: report

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The Central Bank of Iran will conduct a pilot launch of a central bank digital currency (CBDC) on September 22, the Iranian Chamber of Commerce announced. announcement. The so-called “crypto-rial” has been in the planning stage for several years.

The launch of the crypto rial was originally intended for November, according to the Chamber, which said the CBDC was intended “to help improve financial inclusion and function as a powerful tool for the CBI to compete with other stablecoins globally.” He added that experts in the country were concerned about the readiness of businesses to use a CBDC, the public’s understanding of digital wallets and the effect the introduction would have on banks.

The crypto rial has also been seen as a way to thwart corruption in Iran. The development of the crypto rial started in 2018 and the Central Bank was promising to test the CBDC all year.

AlJazeera reports that the CBDC will run on the Borna platform, developed using Hyperledger Fabric, an open source distributed ledger technology platform from IBM. The news agency adds that the banks will exchange paper rials for electronic rials. Since the platform is licensed, the Central Bank will select the banks to participate.

Thick headed was adopted in 2019 to help modernize Iran’s outdated banking system. According to an Al Jazeera source, the Borna platform will enable the provision of paid financial services, although this is not part of the ongoing trial.

Related: Iranian government to cut power to legal crypto mining rigs in the country

The use of cryptocurrency for payments inside Iran is prohibited, but in August Iranians started using crypto pay for imports, raising concerns among Iranian companies about the lack of cryptocurrency regulation. The Iranian Blockchain Association made similar calls in the old days.