Nearly one year after rumors about Iran launching a national cryptocurrency sufficed, recent news from Al Jazeera suggests that the new type of currency will be released in the next seven days.
According to the report, the national cryptocurrency which is backed by Iranian native fiat currency, Rial could be unveiled at the two-day Electronic Banking and Payment Systems Conference which begins tomorrow in Capital city, Tehran.
The Central Bank Backed Digital Currency (CBDC) will serve as a route for Iran to avoid the heavy sanctions imposed on it by the U.S government, as well the country’s disconnection from international settlement system, SWIFT.
Iran’s disconnection from SWIFT makes it impossible for the nation to receive payment for its exports or issue payment for imports.
However, that will change with the introduction of a CBDC. As per the report, Iran will not use the cryptocurrency for foreign transactions at the moment.
But for the time being, the soon to be launched currency will support the transfer of funds between Iranian banks and other institutions in the country who are active within the cryptosphere.
In the future, the cryptocurrency will facilitate the buying and selling of goods and services within the country by citizens.
Iran’s National Cryptocurrency Biggest Potential
The creation of the rial-backed cryptocurrency will eventually allow Iran to participate in international trade deadline the sanctions by the U.S.
In November, the Islamic nation partnered with Russia and Armenia to develop a blockchain system that will have the same capabilities as the SWIFT network.
Although a timeline for the rollout of the blockchain solution was not provided, the new Iranian cryptocurrency opens the way for the country to participate in the Innova SWIFT system.
Yuri Pripachkin, who heads the Russian Association of Crypto Industry and Blockchain, said in November after the partnership deal was signed,
“According to our information, an active development of an Iranian version of SWIFT is currently underway.”