Iran Develops National Cryptocurrency
November 12, 2018 3:55 pm
Iran has finally announced the development of its national digital currency that is backed by the local fiat money, the rial. After getting approvals from the Central Bank of Iran (CBI), the yet-to-be-named cryptocurrency will be issued for banking institutions for testing payments.
Seyyed Abotaleb Najafi, Chief Executive Officer at Informatics Services Corporation (ISC), shared his thoughts about the state-backed cryptocurrency. He said that the digital currency could be used in a distributed framework to transfer without any interference from institutions. The CEO added that the state-backed digital currency is still in a pilot phase.
The CBI has partnered with Najafi’s company Informatics Services Corporation (ISC). The ISC is an Iranian banking and payments solution provider founded in 1993. The partnership with CBI aims to develop a national digital currency for use in expanding banking system services.
Mr. Najafi said:
“After getting Central Bank of Iran’s approval [it] will be used in the country’s banking system … in the first phase the blockchain banking infrastructure will be granted to Iranian commercial banks to use it as a token and payment instrument in transactions and banking settlement.”
The CEO added that the local fiat currency the rial backs the cryptocurrency. The rial has plunged to 143,000 to 1 USD according to Bonbast.com.
Mr. Seyyed Abotaleb Najafi included that for Iranian national cryptocurrency, the rial has been selected as support. The rial equivalent in the central bank’s account is blocked; therefore, it never creates liquidity.