Key Takeaway:
Iran’s central bank is launching a pilot for its digital rial to facilitate cashless transactions for banking customers, aiming to modernize and simplify domestic transactions. The pilot phase is set for July, allowing customers on Kish Island to use digital wallets and QR codes for transactions, enhancing payment infrastructure in the region.
The digital rial has been in testing since 2022, with the Central Bank of Iran touting its security and simplicity compared to traditional payment methods. However, the US Department of the Treasury’s OFAC has imposed sanctions on entities linked to Iran’s digital currency program.
These sanctions include the Iran-based Informatics Services Corporation (ISC), responsible for developing the central bank’s digital currency platform. Despite the sanctions, ISC has been working on the digital rial since 2018 using Hyperledger Fabric, a blockchain framework.
Central Bank of Iran’s Digital Rial Pilot
The Central Bank of Iran is set to launch a pilot for its digital rial, allowing cashless transactions for banking customers. This move is aimed at modernizing and simplifying domestic transactions, with the pilot scheduled for July. Customers on Kish Island will be able to utilize digital wallets and QR codes for purchases and fund transfers, enhancing the region’s payment infrastructure.
Sanctions on Entities Linked to Iran’s Digital Currency Program
The US Department of the Treasury’s OFAC has imposed sanctions on entities facilitating Iran’s digital currency program, including the Informatics Services Corporation (ISC) linked to the Central Bank of Iran. Despite these sanctions, ISC has been utilizing Hyperledger Fabric to develop the digital rial since 2018, aiming to enhance payment security and efficiency in the region.
