Iran intends to launch a pilot version of the cryptocurrency rial in the next two months

After reminding Iranian banks and other credit institutions of the law regarding the introduction of the Central Bank Digital Currency (CBDC), the CBI announced in April that it was preparing for the upcoming launch of the digital currency. They delved into how it would be minted and distributed.

The monetary authority will be the sole issuer of the cryptocurrency and its maximum supply will be determined by it. As previously reported, the token is built on a distributed ledger system that will be maintained by authorized financial institutions and capable of enabling smart contracts.

The new Iranian currency will be issued under regulations that control the issuance of banknotes and coins and will be available for domestic transactions only. The CBI will be responsible for monitoring the financial and economic impact of digital cash and ensuring that it does not adversely affect its monetary policy.

The central bank also said that state-issued coins will play a role in establishing the presence of cryptocurrencies in the country, which does not allow payments using bitcoin and similar cryptocurrencies. The unveiling of its pilot phase comes at a time when dozens of central banks around the world are exploring or are already developing their own CBDCs.