Iran aims to roll out a beta version of the cryptocurrency within two months

The government in Tehran is taking steps to prepare for the launch of Iran's new digital currency, which is referred to as the cryptocurrency rial. The Monetary Authority of the Islamic Republic hopes to start the pilot phase of the project within the next two months. Iranian authorities are taking necessary measures to launch a trial version of the cryptocurrency rial starting from the month of Shahrivar, according to the Persian calendar, which begins on August 23.

According to what Central Bank of Iran Governor Ali Saleh Habbadi told reporters on Friday. It was reported by the English-language Iran news portal FrontPage. Senior executives confirmed that the Iranian digital currency will be different from decentralized global digital currencies.

He noted that it is designed only “to replace the banknotes that people currently have.” Salhabadi also revealed that the pilot project will initially cover only one region of the country. The crypto-riyal, which has been in development for some time, will eventually be introduced to other regions of the Islamic Republic, at a later, unspecified stage.

The Central Bank of Iran announced last April that it was preparing for the upcoming launch of the Central Bank Digital Currency (CBDC). After informing Iranian banks and other credit institutions of the regulations that will accompany its offering. It details how it will be minted and distributed.

The monetary authority will be the sole source of cryptocurrency reals and will set the maximum supply. According to previous reports, the currency is based on a distributed ledger system that will be maintained by authorized financial institutions capable of supporting smart contracts. The new Iranian currency will be issued under the provisions governing the issuance of banknotes and coins and will be available exclusively for transactions within the country.

The Central Bank of Iraq will be responsible for monitoring the financial and economic impact of digital cash and ensuring that it does not negatively affect its monetary policies. The central bank also insisted that the currency issued by the country will play a role in proving the presence of cryptocurrency in the country, as payment using Bitcoin and the like is not allowed. The announcement of its pilot phase comes at a time when dozens of central banks around the world are considering or are already developing their own central bank digital currencies.