Iran prepares for a central bank digital currency pilot program without elaborating on the time frame of the program as we can see further in our latest cryptocurrency news.
The Central bank of Iran is planning to launch a CBDC pilot soon. According to the Iranian Labour News Agency, the CBI vice governor said that the central bank’s digital currency could help the country in its financial hardships. The development of the sovereign digital currency in Iran began in 2018 as the Informatics Services Corporation was an executive arm of the CBI. The development phase was completed and the pilot launched soon but CBI didn’t reveal a lot of details about the time frame.
As Iran prepares for a central bank digital currency pilot, it will reportedly use the Hyperledger Fabric platform hosted by the Linux Foundation. Iran had a hard time with its financial and economic situation as a result of heavy economic sanctions levied by the US. Amid these problems, Iran turned to crypto and was among the first countries that legalized BTC mining in hopes of reviving the economy but it had to temporarily shut down mining operations a few times due to the acute power shortages and the blackouts.
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Iran is also considering using crypto for international trade while hoping to bypass the trade sanctions. The Ministry of Trade and the CBI reached an agreement to link the CBI payment platform for a trading system that allows businesses to settle payments using cryptocurrencies. Nearly 100 nations around the world are working on sovereign digital currency while a handful of them reached the pilot phase. China is at the forefront after it already completed its CBDC development a few years ago and started mass testing in various sectors.
Switzerland and France carried out a few cross-border pilots already. South Korea, Russia, and Japan are also expected to carry out trials in 2022 while the US is still considered. According to the Atlantic CBDC tracker, nine nations already launched a cBDC, 14 are in a pilot phase, 41 are researching and 16 are in a development phase.
As recently reported, Iran will allow crypto payments for international trades as the Central Bank of Iran and the Ministry of Trade reached an agreement to link the payments platform to a trading system that will allow businesses to settle payments using crypto.
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