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Iran Most Likely To Amend Laws of Central Bank of Iran for Facilitating National CBDC

The Republic of Iran is more than ready to test the national digital currency it has developed and it is very likely that in order to facilitate the national CBDC project, Iran might be amending and altering the laws pertaining to the country’s central bank i.e. Bank of Iran. On the other hand, an exclusive crypto law is under the development phase which the Government wants to implement in the meantime.

It was because of the US and UN-led sanctions that introduced Iran to the blockchain and cryptocurrencies. Iran must be thankful for these sanctions or otherwise, it couldn’t have benefitted from them. Iran’s efforts for utilizing crypto to support its national economy and counter-sanctions are quite appreciable. Now these efforts have borne fruit. Iran has now successfully developed its national digital currency which is usually known as Central Bank Digital Currency (CBDC).

It has been announced by the Iranian Government that the national CBDC project has moved into its final stage. The project will now be tested by going through rigorous processes of testing. However, before initiating testing, the project requires beforehand alternations since Iran’s CBDC is going to be issued by the Central Bank of Iran. These alterations will need to be first brought into the Central Bank of Iran said bank’s Governor, Ali Salehabadi.

While talking to the press, Governor Salehabadi said that he had already held first discussions with the country’s lawmakers. He told the press that the Central Bank of Iran is presently is studying the benefits as well as risks of the CBDC. He also disclosed that the testing will commence once approval is given by the Iranian Council of Money and Credit. Without such approval, the testing cannot commence and the Central Bank of Iran would have to wait for permission.

Governor Salehabadi has been given the high-powered post only two weeks ago. He resumed the charge of Governor of Central Bank of Iran on 6th October, 2021. Of course he did not comment too much on the future national digital currency of Iran.

However, one thing is for sure which is that Iran had started to work on the national CBDC project very early. It was three years ago, when Iran’s CBDC project was entrusted to Informatics Services Corporation by the Iran’s central bank. It is about time when Iran has finally revealed completion of its CBDC project. So far there are more than 8 CBDCs in the world. While most of the countries are working on the projects and many are still considering the project.

A very important thing to note about Iran’s CBDC is that it hasn’t been developed on any of the public blockchains. Instead, the blockchain network for Iran’s CBDC is exclusively private. In addition, the digital coin of Iran will not be subject to minting like all other cryptocurrencies do.