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Iran has developed its national cryptocurrency supported by rial

Seyyed Abotaleb Najafi, CEO of Informatics Services Corporation, said the national cryptocurrency has been developed and designed by Informatics Services Corporation at Central Bank of Iran’s request to be utilized new technologies in expanding banking system services. Talking to IBENA, he stated that the national cryptocurrency is issued by the central bank and can be used in a distributed and one-to-one framework for transferring without any institute’s interference.

The official said that the objective for developing this infrastructure is feasibility and evaluation of blockchain and cryptocurrencies’ capabilities for developing financial and payment services in Iran’s banking system in interbank level and retail banking.

According to Najafi, Iranian national cryptocurrency is in a pilot stage and after getting Central Bank of Iran’s approval will be used in the country’s banking system, adding in the first phase the blockchain banking infrastructure will be granted to Iranian commercial banks to use it as a token and payment instrument in transactions and banking settlement.

Regarding the national cryptocurrency, Najafi remarked that support is highly important issue in cryptocurrencies, so for Iranian national cryptocurrency, rial has been chosen as a support, namely in exchange for each single national cryptocurrency unit, its rial equivalent in the central bank’s account is blocked, therefore, it never creates liquidity.

He highlighted that at the present the electronic banking services have been developed well in the country and the development is underway, but the country has a great distance with digital banking processes.