Iran Says It Will Launch a CBDC

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During a national banking conference on November 25th, Central Bank of Iran (CBI) governor Mohammad Reza Farzin announced that the country will soon introduce a central bank digital currency (CBDC). This move is in line with Iran’s advanced digital financial infrastructure and determination to continue innovating in the face of sanctions.

The launch of the CBDC is part of a larger effort to modernize banking practices, as Farzin highlighted at the Modern Banking and Payment Systems Conference in Tehran, as reported by news agency Tasnim. He stated: “It is the responsibility of central banks worldwide to develop innovative banking systems, and we are committed to fulfilling this duty in Iran.”

The digital rial, which has been in development since 2018, reportedly utilizes open-source Hyperledger Fabric technology. By mid-2023, it had completed the “pre-pilot” stage of research with the involvement of major Iranian banks.

In June, the CBI launched a pilot project for a retail CBDC on the island of Kish, an Iranian free trade zone that receives 12 million tourists annually. Currently, the digital rial is non-intermediated and primarily focused on domestic use.