It seems that the Iranian government is trying to apply the good practices of Venezuela’s President Maduro to lift the country’s economy and avoid US sanctions. According to Informatics Services Corporations (ISC), a central bank-affiliated body, Iran is actively working on the national cryptocurrency project. It is expected that the new digital currency will be backed by Rial. New national fiat currency and will be developed on the Linux Foundation Hyperledger Fabric technology.
Contrary to Bitcoin, which is a decentralized cryptocurrency, digital Rial will be centralized. Cryptocurrency centralization basically means that it cannot be mined. New cryptocurrency it will be released by the central bank and its transaction records will be stored and can only be accessed on a private blockchain. In phase one, Iranian banks will test digital Rial as an interbank payment instrument. In phase two national cryptocurrency will be used for local payments.
Saeed Mahdiyoun, the deputy director of the Supreme Council of Cyberspace, the state agency that is monitoring and regulating digital Rial, said that Iran’s president Rouhani is fully supporting this project.
Further cryptocurrency regulation
Currently, cryptocurrencies are illegal in Iran, as Iranian banks were concerned they would spark money laundering in this Middle East country.
During digital Rial annunciation, the topic of cryptocurrencies regulation and trade was once again opened. The Central Bank of Iran said that by late September they would have their official stance on this topic.
Despite the government ban, people in Iran were buying Bitcoin on the black market. The price in the illegal markets goes up to $20,000 while its value was around $8,200 on international markets. So far Iranians have already spent $2.5 billion on buying cryptocurrency.