Iran is considering launching a CBDC pilot to decentralize resources

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According to a top-level official, Iran wants to start a trial for its central bank digital currency (CBDC) shortly. The Iranian central bank thinks that the CBDC may help the country’s financial system fix anomalies and decentralize resources.

As per the Iranian Labour News Agency, Mehran Moharamian, the Central Bank of Iran’s (CBI) deputy governor for IT, did not specify a specific date for the pilot but said it would take place soon.

Mehran thinks that a digital rial would allow for resource decentralization in Iran, which has long struggled with corruption. Transparency International’s 2020 Corruption Perception Index put the country 149th out of 180 nations, with a 25 out of 100. Many high-ranking government officials, including the Speaker of Parliament and prominent judges, have been found guilty of corruption in recent years.

According to the CBI, a digital rial would help resolve anomalies in the local financial environment. These will surely simplify AML and KYC checks for financial institutions and regulators. Iran is one of the nations on the Financial Action Task Force’s (FATF) grey list because of its leniency in these two areas. In addition, the nation has failed to enact financial rules that would bring it into compliance with the FATF principles.

When the CBI entrusted the Informatics Services Corporation with creating the CBDC in 2018, Iran started developing the digital rial. In addition, Iran’s banking automation and payment services network is run by the organization, an executive branch of the CBI.

As the CBI prepares to launch the CBDC pilot, Iranians may trade with overseas partners in Bitcoin SV and other digital currencies. According to CoinGeek, the CBI and the Ministry of Trade have connected the national payments network to a trading system that enables customers to complete payments in cryptocurrencies.

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