The National Digital Currency of Iran is being launched by the Central Bank of Iran (CBI) in a public pilot program aimed at domestic micropayments.
Officially announced on June 18, the CBI is introducing a pilot scheme for Iran’s central bank digital currency (CBDC), known as the digital rial. Starting on June 21, the pilot will be available to banking customers and tourists on the beautiful island of Kish.
Kish Island, the second largest island in the Persian Gulf, covers an area of 92 square kilometers and is a popular tourist destination, attracting around 12 million visitors annually. As one of Iran’s free trade zones, Kish welcomes tourists from various countries without the need for a visa.
Ranked as the third most visited holiday destination in the Middle East, after Dubai and Sharm el-Sheikh, Kish Island is set to become a hub for domestic and international cryptocurrency exchanges, as proposed by Muhammad Javad Azari, a former minister of information and communications in Iran.
The digital rial initiative on Kish Island eliminates the need for interbank settlements, offering a convenient and secure payment method for users. Through scanning a barcode using specialized software, bank customers and tourists can make payments using the digital rial, alongside traditional cash or bank cards.
The primary goal of the digital rial is to pave the way for the digital economy in Iran and enhance the efficiency of micropayments. The CBI highlights the importance of this digital currency in improving payment methods within the country’s borders.
While Iran has embraced cryptocurrency for trading, the government has prohibited the use of crypto as a form of payment for goods and services. Cryptocurrency mining activities in Iran have been regulated since 2018, with concerns raised by U.S. Senators like Elizabeth Warren about potential national security risks associated with Iran’s crypto miners.
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