Central Bank of Iran promises CBDC launch, fintech to fight sanctions
The Central Bank of Iran (CBI) is set to launch a central bank digital currency (CBDC) named the digital rial, according to CBI governor Mohammad Reza Farzin. Announced at a national banking conference on November 25, the CBDC is designed for retail purposes and is part of Iran's strategy to modernize its banking system in light of ongoing international sanctions. Farzin cited the country’s advanced digital financial infrastructure and stressed that the central bank is committed to innovating despite these hurdles. The digital rial, which has been in development since 2018 using open-source Hyperledger Fabric technology, is currently in a non-intermediated phase, focusing primarily on domestic use. Additionally, Farzin remarked on recent advancements in integrating Iranian payment systems with Russia’s MIR system, moving away from SWIFT, and enhancing connections with BRICS nations to facilitate global trade. The Shetab payment system was highlighted as one of the region's most efficient, processing transactions in under two seconds. Iran is also exploring cryptocurrency options for international trade, although exchanges face risks due to US sanctions.
Source 🔗