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known informally as Iranian toman (IRT) 1,000 with prices, for instance, typically stated in that way online.
“People talk in tomans and official centres report in rials. Removing four zeroes is a necessary step to simplify financial transactions,” government spokesman Ali Rabii said on May 3 in a social media post.
The approved bill must now go before a committee and the Guardian Council, which vets laws and suggests recommendations or alterations. Considering the urgency widely felt about the situation, it may be expedited through the official channels in a matter of months.
Dustin Furst, a Berlin-based Eurasia specialist, said of the move: “Fascinating. And late for such measures to actually be effective? Isn't this going to devalue the IRR when everyone tries to get as much foreign currency/gold for their Rials?”
The bill states that a two-year transition period would be needed to successfully move from the rial to the toman.
“After the transition phase, past liabilities based on the rial would be fulfilled only in toman,” the government added in its plans.
7.1​ Cryptocurrency
Iran’s central bank issues “Version 0.0” draft on regulating use of cryptocurrencies
An initial 13-page draft on regulating the use of cryptocurrencies in Iran has been released by the country’s central bank, IBENA has reported. The draft reportedly suggests heavy oversight should be exercised by the Central Bank of Iran (CBI) while the market develops. “Version 0.0”, as the drafted rules have been dubbed, is meant to bring clarity to the utilisation of the global digital payment method and “allow traders to plan for their future”. After initially banning the use of cryptocurrencies such as Bitcoin, the CBI now recognises the payment method. It is also laying the groundwork for a future Iranian digital currency that it intends to launch.
The drafted regulatory guide also sets rules for initial coin offerings (ICOs), new digital currency launches, the establishment of cryptocurrency exchange bureaus and coin mining.
Last year somewhat kneejerk anti-cryptocurrency bylaws were brought forward following the explosion of virtual currency trading in Iran to facilitate capital flight amid the country’s economic difficulties in the face of the reimposed US sanctions. Once finalised, the new rules are expected to replace those regulations.
The new rules also stipulate that Iranians are barred from holding large quantities of foreign cryptocurrencies while also “using cryptocurrencies as a method of payment inside the county”.
However, such a ruling would be impossible to enforce. There are millions of euros worth of cryptocurrencies already being exchanged Iranians on a daily basis through local digital bureaux de change.
Following the announcement of the draft, one Iranian trader, Amin Hosseini,
32​ IRAN Country Report August 2020 www.intellinews.com