Iran to Pilot ‘National Cryptocurrency,’ Considers Blockchain Tech for Stock Market

Officially, the Central Bank of Iran plans to launch its pilot phase of digital currency. The Islamic Republic wants to join the growing number of countries that are interested in a sovereign currency, and it is also looking to use blockchain technology in other areas.

Iran will begin state-backed digital currency trials

According to the Iranian Labour News Agency, a high-ranking representative from the financial regulator stated that Iran’s monetary authority plans to pilot its central bank digital currency, CBDC, in the near future. This news is the fourth year anniversary of the original announcement.

Mehran Moharamian (deputy governor for IT at Central Bank of Iran), stated that digital currencies are a solution to certain inconsistencies as well as decentralizing resources. He noted that CBDCs have been used in other countries.

Moharamian didn’t provide any details on the pilot phase’s start. Iranian authorities gave the Informatics Service Corporation the task of developing a national cryptocurrency in 2018. The country’s payment services and banking automation are managed by the CBI arm.

The company later explained that the Iranian digital currency was created using the Hyperledger Fabric platform. This is a blockchain framework implementation, and one of the Hyperledger projects hosted by Linux Foundation.

The Iranian Stock Market is Set to Recover from Blockchain

Although Iran’s crypto market is still unregulated, other than mining, another report this week suggested that officials are looking at different ways to use the technology that underpins cryptocurrency like bitcoin.

Majid Eshqi, the head of the Iranian Securities and Exchange Organization, recently stated that Iran’s capital markets should seriously consider blockchain technology because it can address major share market needs and provide new opportunities for their revival. He elaborated, as quoted by SENA and Financial Tribune in English.

In two years, we will be forced to use blockchain technology… We will soon start tokenizing stocks and physical assets that can easily be traded on these new platforms.

He said that it was time to look at the potential of blockchain technology to solve existing problems, such as the identity verification of shareholders and to start the infrastructure process.

Iranian media reported earlier in January that Tehran would allow local companies to use cryptocurrency in international settlements with foreign partners. According to reports, the Central bank and government of the sanctioned nation have given their approval for the adoption of a system that facilitates payments using digital coins in foreign trade.