Crypto Rial: Iran Begins CBDC Trials
Crypto rial is said to be designed in a way that makes it easy to track.
CBDC, or Central Bank Digital Currency, is steadily gaining traction around the world as more and more governments and central banks are looking to tap into the crypto space with their own digital versions of national currencies. Starting September 22, Iran has become the latest nation to jump onto the CBDC bandwagon. For those unaware, CBDC is a legal tender issued by a central bank in digital form. It is exchangeable on a one-to-one basis with a country’s fiat currency, so both the digital currency and national fiat currency will carry the same value.
The Central Bank of Iran (CBI) said in an official press release that the aim of introducing the crypto rial is to turn banknotes into a programmable entry. Security is also a prime factor when it comes to the design of the crypto rial, as per CBI.
The crypto rial is said to be designed in a way that makes it easy to track, even if data on a device, like a smartphone, is hacked.
It should be noted that all CBDCs are centralised, so they are not anonymous, making them safe from anti-money laundering rules. Also, unlike cryptocurrencies, the value of a CBDC will never fluctuate.
ALSO READ: Digital Rupee: Why India Is Keen On Introducing A CBDC
India is also looking to introduce its own CBDC, which could be called the digital rupee, within this year. Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar confirmed in June that a CBDC will indeed be launched this year, but the the "process of introduction" will be gradual to ensure smooth implementation and operations.
Earlier this month, a similar statement was made by RBI Governor Shaktikanta Das. He said, “The RBI is now actively working towards a phased implementation of Central Bank Digital Currency (CBDC) in both wholesale and retail segments. This is expected to give further fillip to the digital ecosystem.”
An official CBDC launch date hasn’t been announced by the RBI yet.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.
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