A top Iranian official believes that cryptocurrency can be a solution to the massive sanctions. In a pilot phase, the country plans to launch its CBDC.
For a long time, CBDC headlines have dominated fintech media. While several countries have been working to create a national digital currency (NDC), only a few of them have reached the pilot phase. Iran is the latest country to announce its CBDC pilot.
According to the Iranian Labour News Agency’s latest report, the Central Bank of Iran intends to launch a pilot phase for CBDC within the next few days. The official didn’t give any details about the timeline. Mehran Moharamian, CBI Vice Governor for IT Affairs, stated that cryptocurrencies are a solution to growing financial instability around the globe.
The cryptocurrency industry in Iran is not subject to regulation, which is quite interesting. The central bank of Iran, a country in Western Asia, had allowed domestic banks and money exchanges to use cryptocurrency generated by authorized miners from the region to pay imports. The CBI was actually the first to develop a digitalized version of its currency to avoid the economic sanctions imposed in the United States and to allow cross-border transactions.
CBI’s subsidiary, the Informatics Services Corporation and private joint-stock firm began developing Iran’s digital currency in 2018. Officials at ISC revealed that the Hyperledger Fabric platform was used in the design of Iran’s cryptocurrency. Hyperledger, a multi-project open source platform, is hosted by The Linux Foundation. It was created to promote cross-industry Blockchain technologies.
Iran Blockchain Ecosystem and Cryptocurrency
Under its supervision, the Iran Chamber of Commerce, Industries, Mining and Agriculture established Iran Blockchain and Cryptocurrency Association last year. The organization’s primary purpose was to address the challenges posed by Iran’s rapidly expanding cryptocurrency and blockchain ecosystem.
IBCA was formed following the suspension of Iran Blockchain Association (IBA), by the Ministry of Interior, in June 2021, for allegedly violating its articles.
Iran is known for being one of the most crypto-friendly countries in the world. The lawmakers had placed a temporary ban on crypto mining last summer, but they were lifted in September after the Iranian power grid became stable. Two months later, Iran Grid Management Company announced that it had stopped all crypto mining authorizations to conserve energy for winter.
Marla Brooks – Financial Analysis
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