It has been revealed that the Central Bank of Iran's (CBI) "national cryptocurrency" would soon begin a test phase. Salehabadi, who has been in charge of the CBI since Oct. 6, declined to provide any more information on the digital currency issued by Iran's central bank. After his first meeting with legislators, the senior official spoke to the media and stated that the regulator is now looking into the potential dangers and benefits of the initiative. To paraphrase him, as reported by the IRIB News and Financial Tribune: "Once the Money and Credit Council has approved it, we will begin the pilot experiment immediately." The initiative's next phase is expected to follow previous intentions to create national crypto, as suggested by the English-language business every day.
The Islamic Republic's national currency, the Rial, was being created on a private blockchain, as it turned out. The Iranian state-issued currency will not be mined, unlike cryptocurrencies based mostly on public blockchains such as Bitcoin.
According to the article, CBI subsidiary Informatics Services Corporation was entrusted three years ago with developing a nation's banking automation and cost businesses community's sovereign digital foreign currency. Later comments by CBDC officials indicated that the Hyperledger Fabric technology was used to build a prototype of the CBDC.
The general public had no idea how far this prototype effort had progressed until later bulletins announced that a "crypto rial" scheme was in the works. According to the news source, Iran's cyber currency will be a digital foreign currency issued by the Central Bank of Iran (CBI), not a decentralized cryptocurrency for small cashless transactions.
While Tehran's administration is cracking down on crypto investments and trading, only allowing banks and licensed money changers to use Iranian-issued currency to pay for imports, legislators have criticized the country's insurance regulations that limit access to the crypto market. Some believe that more lenient regulations would let Iran get through US-led sanctions while strengthening its banking system. A special working committee to clarify the views of the financial institution and the federal government on cryptocurrency, according to Governor Salehabadi, has already been formed.
Iranian Central Bank Law to be Amended by New Commission
Iranian media has also revealed that the new management of the central financial institution and Majlis members have agreed to set up a joint fee charged with reforming the CBI regulations. We expect its members to complete a long-delayed replacement for the rule that controls central bank operations soon.
The mining industry is the only part of the crypto industry that has gotten additional attention from regulators. Iranian authorities recognized the extraction of digital currency in 2019 as a legal, economic activity and set up a licensing system for anyone involved in the industry to operate under. After being criticized for electricity shortages over the unusually hot summer, mining farms have had their limitations removed for authorized crypto miners with a capacity of above 50, according to the state-run energy company Tavanir.