Iran Launches Digital Currency Pilot Program on Kish Island

The Central Bank of Iran (CBI) has announced the start of a pilot scheme for using the country's digital currency, the digital rial, on the southern island of Kish.

Iran (IMNA) - The digital currency will be available to banking customers and tourists in Kish on June 21, marking an expansion of a pilot program that began in May 2023. The project involves Tejarat and Mellat banks, which will allow people to use the currency for retail purposes, including purchases of goods and services.

A central bank digital currency (CBDC) can facilitate everyday transactions by allowing households and businesses to make payments that are faster and safer than those made by physical cash. Many central banks around the world have been working on CBDCs in recent years amid a global rise in the use of cryptocurrencies like bitcoin.

Iran started its program for a digital currency in 2021 after carrying out initial studies on the project and after the country's High Council of Money and Credit approved the plans. The CBI said the launch of digital rial will help expand Iran's digital economy and will increase the resilience of the country's payment infrastructure. It also aims to help the CBI better manage the risks caused by the spread of "private moneys", a reference to the growing public concern about the mining and trade of cryptocurrencies.

News ID 764429


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