Skip to content Skip to sidebar Skip to footer

Editor’s Note: With such volatility in the markets, stay up to date with daily news! Get our quick roundup of today’s must-see news and expert opinion in minutes. Register here!

(Kitco News) – The Iranian Chamber of Commerce has reported that the Central Bank of Iran (CBI) plans to launch a pilot program for its central bank digital currency (CBDC), the crypto-rial, from Thursday.

The crypto-rial is designed to leverage blockchain technology to turn Iranian rial banknotes into a “programmable entity” that can more easily be transacted across borders and around the world.

According to CBI Governor Ali Salehabadi, “The bank has put in place the infrastructure and the rules for the crypto-rial. Cryptocurrency is planned as a new type of national currency, like bills and coins, but completely digital.

In addition to its growing user-friendliness, one of the main features of the crypto-rial touted by the CBI is its high level of security.

“Crypto-rial has been designed in such a way that it is easy to track and even if smartphone data is hacked, crypto-rial can be tracked,” the Iranian Chamber of Commerce’s announcement said.

The CBI predicts that the crypto-rail will help improve financial inclusion in the country and serve as a tool to help the economy compete with other stablecoins around the world.

This development in Iran is the latest to show the country’s growing interest in blockchain technology and cryptocurrencies. In early 2022, the Iranian government approved the settlement of cross-border payments using cryptocurrency through the Central Bank’s crypto platform. On August 9, the first foreign trade agreement of import goods worth $10 million was concluded using cryptocurrency.

Russia Lets Private Sector Explore Crypto Payments

On Monday, the head of the financial policy department of the Russian Ministry of Finance, Ivan Chebeskov, discussed the country’s draft law on digital currencies, saying that it should create a framework for settlements, while the details – such as the list of currencies used and the list of counterparty countries – will be determined in practice.

“The Ministry of Finance has drawn up a draft law on digital currencies, it is comprehensive and includes a lot of things,” Chebeskov said. “But in terms of payments, we’re creating a mechanism for businesses rather than completely building this architecture, because it’s not entirely clear how it should be regulated, so we’re giving businesses the option with this bill to pay in cryptocurrency, but in terms of which cryptocurrencies will be used, how to trade with counterparties, which countries it will operate with – all of that we leave to entrepreneurs.”

Chebeskov suggested that entrepreneurs will collectively be able to figure out how best to make the system work more efficiently than authorities could.

“And if this is to be raised to an intergovernmental level, then of course we will also get involved and promote it in one way or another within the framework of international cooperation. But rather, since there are already requests of the company, we expect this to be work that the company has done before or will do in the future,” the official said.

In the long term, the Russian Ministry of Finance sees a variety of applicable use cases for cryptocurrencies beyond their use in foreign trade transactions.

“Current restrictions encourage us to use these technologies, especially as a new international payment mechanism. But in my opinion, this is only part of all the opportunities that digital financial assets and digital currencies can provide,” Chebeskov said.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

Source link

Leave a comment