Iran Plans to Introduce National Cryptocurrency Soon

According to a recent report published by Tehran Times, Iran is planning to roll out the pilot phase of its national cryptocurrency in the near future. Mehran Moharamian, Vice Governor for IT affairs at the Central Bank of Iran (CBI), highlighted the potential benefits of cryptocurrency assets in the country’s financial sector.

According to Moharamian, digital currencies serve as a solution for inconsistencies in the financial system. CBI has been working on the national cryptocurrency for the last few years.

While Iran is in support of the use of digital assets in the region, the country’s regulatory authorities recently launched a crackdown on illegal crypto mining activities. In May 2021, Iran banned the mining of digital currencies ahead of its peak electricity demand season.

With the launch of a national cryptocurrency, Iran aims to promote innovation in its financial services industry. “In 2018, Informatics Services Corporation, the executive arm of the Central Bank of Iran in charge of operating the country's banking automation and payment services network, was tasked with developing a national cryptocurrency. The company’s officials later said the Iranian cryptocurrency has been designed using the Hyperledger Fabric platform,” Tehran Times mentioned in its report.

Crypto Payments for International Trade

Last week, a report published by the Mehr News Agency highlighted that CBI and Iran’s Ministry of Trade have reached an agreement to allow businesses to settle international payments through digital currencies. Reportedly, the authorities have finalized a mechanism to settle international transfers via digital assets.

“We are finalizing a mechanism for operations of the system. This should provide new opportunities for importers and exporters to use cryptocurrencies in their international deals,” Alireza Peyman-Pak, Iran’s Deputy Minister of Industry, Mine and Trade and Head of Iran’s Trade Promotion Organization (TPO), reportedly told the local media in an interview.