On Thursday, the Central Bank of Iran will commence its central bank digital currency (CBDC) pilot project in conjunction with the country’s Chamber of Commerce, Industries, Mines, and Agriculture. The CBI explained that the goal of creating crypto-rial is to convert currency into programmable entities.
The bank’s announcement follows its release of a draught paper in August, which outlined the goals, dimensions, dangers, and opportunities for the creation of a digital rial. This digital currency is said to have exceptional security, which has led Iran to become the latest nation (joining Jamaica, The Bahamas, and China) to take advantage of crypto technology.
Iran set to launch Crypto-Rial on Thursday
The central bank digital currency (CBDC), also known as the "Krypto rial" in the country, will be pegged 1:1 to the Rial, Iran’s national currency. This is a project that officials hope will give them more control over the national currency and its users. It could also offer new opportunities to financial actors.
Since the United States withdrew from a nuclear deal with Iran and imposed sanctions in 2015, cryptocurrency has become increasingly popular in the Middle East. Some officials in Tehran recognized the potential of cryptocurrencies to circumvent sanctions when crypto usage was high in 2018.
However, the digital Rial will not be used outside Iran’s borders as it will only be utilized inside the country’s border. The digital Rial will run on a Borna platform, developed using Hyperledger Fabric. IBM, an American technology giant, established the open-source enterprise blockchain Plattform.
It’s a permissioned distributed ledger technology (DLT) platform, which implies the central bank has sole control over who gets access. Additionally, the currency cannot be mined like Bitcoin or other decentralized cryptocurrencies.
Source: https://www.cryptopolitan.com/irans-cbi-plans-to-use-crypto-tech-cbdc/