Irani central bank eyes CBDC, fintech progress to combat sanctions CBDCs 22 hours ago

Iran’s Central Bank is preparing to launch its own central bank digital currency (CBDC), called the Digital Rial, to modernize its banking infrastructure and enhance financial operations, according to local media reports.Central Bank Governor Mohammad Reza Farzin revealed the plans on Nov. 25 at the 11th Annual Conference on Modern Banking and Payment Systems.The Digital Rial is set to leverage Iran’s advanced digital banking infrastructure, particularly the Shetab payment network, which processes transactions in under two seconds.The currency aims to enhance the efficiency of domestic and international transactions, reducing operational delays and costs. It represents a key component of Iran’s broader push to digitize its financial systems, ensuring compatibility with the evolving global financial ecosystem.Farzin described the Digital Rial as a key step toward positioning Iran as a leader in modern banking within the region. The currency’s introduction is part of a broader effort to integrate Iran’s financial systems with international networks while strengthening its resilience against external pressures.He said:“Our vision is to adapt, innovate, and collaborate globally, ensuring Iran’s banking system remains at the forefront of digital advancements.”The initiative also signals a commitment to bolstering the country’s economic resilience. With sanctions restricting access to conventional international banking platforms, such as SWIFT, the Digital Rial is seen as a strategic tool for securing financial autonomy while promoting innovation within Iran’s financial sector.Farzin also highlighted that Iran’s Central Bank has implemented alternative solutions, such as the ACU-MIR platform, to address the impact of sanctions. Operational since October, the system facilitates regional trade by bypassing SWIFT, enabling transactions with key partners such as India and Pakistan.These efforts are part of a broader strategy to deepen financial ties with BRICS economies, which are expanding the use of local currencies to reduce dependence on traditional global financial networks.Iran has also advanced regional connectivity by linking its Shetab network with Russia’s MIR payment system. This collaboration allows cross-border transactions and supports tourism, with Russian tourists expected to use Iran’s point-of-sale systems this winter. Iranian travelers will gain similar access in Russia by early 2025, showcasing the practical benefits of these integrations.The rollout of the Digital Rial represents a pivotal moment for Iran’s banking sector. It highlights the nation’s efforts to foster innovation, strengthen economic resilience, and enhance its role in the regional and global financial landscape.By prioritizing digital currency and alternative systems, Iran seeks to redefine its financial operations and adapt to ongoing global shifts in banking practices.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.CryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI. Catch the latest in crypto by following us on X. Stay informed on the go.Polymarket’s decentralized platform attracts record user engagement with over 89,000 new accounts in September.Crypto long positions endure cascading liquidations for the past 24 hours as Iran launches an air strike against Israel.Irani officials have raised concerns over a new web3 “tap-to-earn” game called Hamster Kombat that has gripped the local populace amid deteriorating economic conditions.The digital rial will bypass paper bills, card transactions, and interbank settlement.CryptoSlate’s latest report dives deep into Polymarket’s evolution, its pivotal role in high-stakes prediction events like US elections, and the implications of its controversies on its market position.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.