🚀 Iran's Digital Rial: A Step Towards Financial Modernization
🇮🇷 Iran's Central Bank is set to launch the digital rial, a central bank digital currency (CBDC), aimed at enhancing payment systems and improving international financial ties despite ongoing sanctions. Governor Mohammad Reza Farzin emphasized the significance of this move during the 11th annual conference on modern banking and payment systems, marking it as a pivotal moment in the country's financial evolution.
🗣 Farzin stated, Developing innovative banking systems is a central bank’s responsibility worldwide, and we are determined to fulfill this duty in Iran. He also acknowledged the importance of the conference in shaping banking policies, assuring that the insights gained would influence future strategic decisions.
💳 The digital rial has already undergone a pilot program on Kish Island since June, allowing users to conduct transactions through digital wallets without relying on physical cash or bank cards. This currency is designed to function independently of traditional bank accounts, enabling direct transfers between users and streamlining payment processes.
🌍 Addressing the challenges posed by sanctions, Farzin mentioned the implementation of the “ACU-MIR” system, which facilitates financial transactions with countries like India and Pakistan. He noted, Sanctions remain a significant hurdle, but we’ve made notable strides in recent years … We’ve replaced SWIFT with this platform and strengthened our ties with BRICS.
🤝 Furthermore, efforts are underway to integrate Iran’s Shetab network with Russia’s MIR system to enable cross-border payments. Farzin revealed, Recently, Shetab connected with Russia’s MIR, and several banks are now operational on the system. Future plans include allowing Russian tourists to use Iran’s payment systems this winter and providing Iranian tourists access to Russian point-of-sale systems by 2025. Farzin expressed optimism about these initiatives as crucial steps towards enhancing international financial integration.