Iran has announced the launch date for the digital rial – Bits Media

The government of the Islamic Republic of Iran plans to launch a pilot project for a central bank digital currency in one of the regions of the country by the end of August.

Iranian authorities are preparing to launch a digital rial pilot project from the beginning of June. Launch should take place 23 August. According to the head of the Central Bank of Iran (CBI) Ali Salehabdi (Ali Salehabadi), the state digital currency will be different from other decentralized cryptocurrencies - it is intended solely to replace banknotes, which are currently in use.

The head of the CBI clarified, that outside the test region, digital currency will only be introduced in the later stages of the project. The only issuer of the digital rial will be the Iranian Treasury, and the coin itself is based on a distributed registry system (DLT) and can support smart contracts.

CBDC will be issued in accordance with the provisions, regulating the issue of traditional banknotes, and will be available exclusively for domestic transactions. The CBI will be responsible for monitoring the financial and economic impact of digital money on the economy and, especially, for the influence on the monetary policy of the Central Bank itself.

Previously, the central bank insisted that, that the government-issued coin will play a key role in the introduction of digital assets in the country, where payments using Bitcoin and other cryptocurrencies are not allowed.

Earlier, the CBI announced a ban on trading and promotion of any digital currencies, mined outside the country. Iranian authorities began blocking bank accounts for illegal transactions in the sale of foreign currencies and cryptocurrencies, and also close mining farms.