Iran Opposes Recognition of Cryptocurrency, Announces Development of Digital Rial

According to a high-ranking government official, Iran is unwilling to recognize cryptocurrency as a legitimate means of payment. This comment, which came from Iran’s deputy minister of communications, Reza Bagheri Asl, comes as the Central Bank of Iran (CBI) published rules for the rolling out of its national digital currency.

The deputy minister made the comments while sharing his opinion on the recent resolution by the Digital Economy Working Group concerning crypto assets. Bagheri Asl argued that using foreign currencies in Iran goes against the nation’s monetary sovereignty and banking law. He argued: “So, we will by no means have any regulations recognizing payments with cryptocurrencies that do not belong to us.”

The deputy minister also insisted that “Iran has its own national cryptocurrency, so no payments will be made with non-national cryptocurrencies.”

Bagheri Asl also noted that to protect Iranian citizens, digital asset trading platforms in Oran must submit themselves to regulations similar to the ones imposed in the stock market. He added that “cryptocurrencies must be regulated and banking systems must be observed.”

The Iranian government previously considered authorizing Iranian businesses to adopt decentralized digital currencies for payment settlements with foreign orders to bypass Western financial sanctions. However, Tehran’s focus has shifted to issuing a sovereign digital rial.

Central Bank of Iran Publishes CBDC Regulation, Reveals Pilot Product on the Way

The CBI recently communicated the regulations tied to the “crypto rial” with Iranian banks and crisis institutions, explaining that it has been under development for a while.

The CBI will hold the right to issue the central bank digital currency (CBDC) and determine the maximum supply. According to local media, the crypto rial is built on a distributed ledger system and has the capacity to support the implementation of smart contracts. The source also detailed that the infrastructure and guidelines for the digital asset have been completed and that a pilot product would be available to the market soon.