The Central Bank of Iran (CBI) is undergoing a major financial and legislative transformation this year. The newly appointed governor of the bank, Ali Salehabadi, who has joined the office this month, recently made the new changes clear for the public. After completing his first-ever meeting with the lawmakers under the new designation, he told the media that a new national cryptocurrency project is underway.
He further added that for now, the CBI management, analysts, and financial experts are conducting in-depth research to ascertain the risks, benefits, and other important factors relevant to the new project. The two major media publications in Iran, namely Financial Tribune and IRIB News, covered the incident.
The news articles about the new interest in a digital asset of the Iranian government reveal that they are not entirely new. Information Services Corporation is a subsidiary of the CBI that acts under that wing of digital banking solutions and automation services. This extension of the CBI undertook a new CBDC project 3 years ago.
ISC has already developed a prototype of the CBDC that is going to act as the digital rial equivalent when launched. After the initial undertaking, the public at large has not been updated on the matter thus far. The technology used for this new CBDC is derived from the Hybrid Fabric Platform. The officials working on the project have now come forward with the brief for the masses.
Creation of New Legislative Committee
The new leadership of CBI, under the tutelage of Ali Salehabadi and the Majilis members, has decided to set up a new legislative committee to edit the law for CBI. The changes are required to make sanctions for the Central Bank for creating room for digital asset management in case the financial enterprise decides to start distributing central bank digital currencies (CBDC).
Meanwhile, the mining sector for cryptocurrencies has been thriving in the region ever since it was recognized as a legal industry practice in 2019. In the summer, the business community complained about the excess use of energy resources, after which the government decided to push back on the digital asset miners. However, since then, Tavanir, the state-backed power generator, has lifted the ban on more than 50 crypto mining farms.