The Central Bank of Iran has plans to set up a central bank digital currency, or CBDC, dubbed ‘crypto-rial’. This Monday the bank notified the Iranian domestic banks and credit agencies about a series of forthcoming regulations connected to the CBDC.
The main source of this story, way2pay.ir, has disclosed certain frameworks for action. Like how the digital coin will be minted and distributed. as well the supply volume cap. The Central Bank of Iran has decided on a certain distributed ledger system that will issue the currency; the system will be made up of locally regulated financial institutions.
General knowledge about the CBI crypto entails that this would not be the typical CBDC, as it will not be issued to compete with other digital coins. For now, it is known that there are no official plans on introducing wallets nor any transaction fees, meaning that Iran’s authority wish this to be seen as a direct alternative to banknotes and coins. The crypto-rial is to become a new currency form.
Most notable, it will be the Central Bank of Iran’s full and only responsibility to foresee any consequences and control all systems around the CBDC.
CBDC’s are all the talks in today’s high financial circles, as more and more nations around the world strive for CBDC trial runs and pilot projects.