Iran is launching a pilot for its “Crypto-Rial” on Thursday

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(Kitco News) – Iran’s Chamber of Commerce has reported that the Central Bank of Iran (CBI) plans to launch a pilot program for its central bank digital currency (CBDC), the crypto-riyal, starting on Thursday.

The crypto-rial is designed to leverage blockchain technology to transform Iranian rial banknotes into a “programmable unit” that can be more easily transacted across borders and around the world.

According to CBI Governor Ali Salehabadi, “The bank has in place the infrastructure and rules for the crypto-rial. The cryptocurrency is planned as a new type of national currency, like banknotes and coins, but completely digital.”

In addition to increasing ease of use, one of the main features of the crypto-rial designated by the CBI is its high level of security.

“Crypto-rial is designed in a way that is easy to track, and even if the data on the smartphones is hacked, the crypto-rial can be traced,” the announcement by Iran’s Chamber of Commerce said.

The CBI expects the crypto-chain to help improve financial inclusion in the country and serve as a tool to help the economy compete with other stable currencies globally.

This development in Iran is the latest to show the country’s growing interest in blockchain technology and cryptocurrencies. In early 2022, Iran’s government approved the settlement of cross-border payments using cryptocurrency through the central bank’s crypto platform. On August 9, the first foreign trade agreement involving imports worth $10 million was settled using cryptocurrency.

Russia Will Let Private Sector Explore Crypto Payments

On Monday, Russia’s head of the finance ministry’s fiscal department, Ivan Chebeskov, discussed the country’s draft bill on digital currencies, saying it would create a framework for settlement, while the details – such as the list of currencies used and the list of counterparty countries – would be determined in practice.

“The Ministry of Finance has developed a bill on digital currencies, it is comprehensive and includes many things,” Chebeskov said. “But when it comes to payments, we’re creating a mechanism for business rather than building this architecture completely, because it’s not entirely clear how it’s going to be regulated, so we’re giving businesses the ability with this bill to pay with cryptocurrency, but considering which cryptocurrencies to use, how to negotiate with counterparties, with which countries to operate – we leave all this to entrepreneurs.”

Chebeskov suggested that entrepreneurs will be able to jointly figure out how to best make the system work in a more efficient way than the government would be able to do.

“And if this has to be raised to some intergovernmental level, then of course we will also get involved and promote it in some way as part of international cooperation. But since there are already requests from the business, we expect that this will be work that the business has either already done or will do in the future,” the official said.

In the long run, Russia’s Ministry of Finance sees a number of current use cases for cryptocurrencies beyond their use in foreign trade transactions.

“The current restrictions are a driver for us to use these technologies, including as a new mechanism for international payments. But in my opinion, this is only part of all the opportunities that both digital financial assets and digital currencies can provide, said Chebeskov.