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Iran to reportedly pilot central bank digital currency soon

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According to reports, Iran’s Central Bank (CBI) is intending to start a central bank digital currency (CBDC) pilot program soon.

The CBI vice governor said CBDCs might assist the government resolve financial irregularities, according to an Iranian Labour News Agency report.

Iran’s Informatics Services Corporation, the CBI’s executive arm, began developing a sovereign digital currency in 2018. Once they finished the development phase, a pilot will start. CBI, on the other hand, tight-lipped regarding the timeline.

According to reports, the Iranian CBDC was built using the Linux Foundation‘s Hyperledger Fabric technology.

Iran has had considerable financial and economic challenges as a result of the United States’ harsh economic sanctions. In the face of these challenges, Iran has turned to cryptocurrency, becoming one of the first countries to legalise Bitcoin (BTC) mining in the hopes of reviving the economy. However, due to severe power shortages and blackouts

Using bitcoins for international trade in order to avoid trade sanctions

Iran is also considering using bitcoins for international trade in order to avoid trade sanctions. CBI and the Ministry of Trade have agreed to link the CBI’s payment network to a trading system. That will allow firms to settle payments using cryptocurrency, as reported by.

Nearly 100 countries are currently working on a sovereign digital currency, but only a few have progressed past the prototype stage. China is currently at the forefront: the country completed its CBDC development in 2019 and is now mass-testing it across multiple provinces and retail sectors.

Several cross-border pilots have been conducted by France and Switzerland. Trials suppose to begin in 2022 in South Korea, Japan, and Russia. While the United States is still in the planning stages. According to the Atlantic CBDC tracker, nine countries have already launched CBDCs. 14 countries are in the pilot phase, 16 countries are in the development phase, 41 countries are still investigating CBDCs. And two countries have cancelled their CBDC plans.

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