The plans to pilot its own cryptocurrency the Nat’l in the not so distant future
An announcement on Sunday from the governor of the Central Bank of Iran (CBI) stated that the national cryptocurrency will go into a pilot stage in the near future. While the governor didn’t go into specifics, it’s a similar pattern to what we’re seeing in other nations across the globe, namely China.
The risks involved in cryptocurrency are evident in the market. But, using blockchain technology to create a national centralized cryptocurrency seems to be rather appealing to various governments and is unlikely to have too many risks attached to it for governments and regulatory bodies.
When will the pilot begin?
There are always blockers for banks trying to innovate or bring in the new policy, which is much the case for the Nat’l. It would appear that central bankers are currently studying the risks and benefits involved and will look to pilot the coin once the Money and Credit Council approves it.
The national cryptocurrency was developed on a private blockchain. As such, the currency cannot be mined and won’t be available for trading like other cryptocurrencies, such as Bitcoin which is a DeFi currency and isn’t controlled by a central administration.
This is likely why the information surrounding the Iran currency is very hard to come by. Central bankers recently announced the “crypto-rial” digital currency pilot, but nothing more substantial. CBI officials stated that the crypto-rial is a digital currency that will be used for small cashless transactions.
Other plans from the CBI
While the focus of the Sunday meeting was the announcement of the crypto pilot programme, the CBI governor also stated plans for financial law changes.
The CBI proposes the formation of a joint commission to ensure the long-awaited plan for reforming Iran’s central bank low gets over the line. The hope is these changes will be implemented as soon as possible, likely to coincide with the new arrival of the national cryptocurrency.
The plans for changes can be traced back to 2018, when the Informatics Services Corporation, which is the executive arm of the Central Bank of Iran, was in charge of operating Iran and creating a suitable national cryptocurrency. There is a rising interest in crypto from Iranian citizens, which has been part of the reason Iran is one of the leading nations in developing a national cryptocurrency.