Page 39 - IRANRptJul22

Iran announces upcoming launch of digital rial pilot project
Bilateral trade between Iran and the SCO members last year was equal to 54,856,000 tonnes of goods, valued at 37.168bn.
Total imports from the SCO weighed 9,507,000 tonnes, worth $16.572, marking a 24% increase y/y, Iran Customs Administration noted.
China, Afghanistan (which has observer SCO status), and India were the top three SCO importers of Iranian goods last year, he added.
The SCO is a transcontinental political, economic, security, and military alliance, comprising China, India, Kazakhstan, Kyrgyzstan, Russia, Pakistan, Tajikistan,Uzbekistan and Iran.
The government of Iran plans to launch a pilot Central Bank Digital Currency (CBDC) project in a selected region by the end of August, according to the Central Bank of Iran (CBI).
Iranian authorities believe a digital Iranian rial (IRR) could help alleviate the country’s major difficulty with inflation—running at around 40%— with a shift away from traditional fiat currencies like the rial.
The CBDC launch is scheduled for August 23, head of the CBI, Ali Salehabadi, said.
The usage of the digital rial will be different to that of other decentralised cryptocurrencies as it is intended solely to replace banknotes currently in circulation.
The only issuer of the digital rial will be the Iranian treasury.
The coin will be based on a distributed ledger system (DLT) and it will be able to support “smart contracts”.
It will be available exclusively for domestic transactions.
The CBI will be responsible for monitoring the financial and economic impact of digital money on the economy and, especially, the impact on its own monetary policy.
The central bank has previously insisted that the government-issued coin will play a key role in the adoption of digital assets in a country that does not allow payments with bitcoin and other cryptocurrencies.
Also previously, the CBI announced a ban on the trading and promotion of digital currencies mined outside the country. Authorities have begun blocking bank accounts for illegal transactions involving the sale of foreign currencies and cryptocurrencies. They have also been closing crypto-mining farms, though many of the closures are attributed to the need to conserve electricity for more essential uses such as air conditioning during the hottest summer months.
CBDCs are growing rapidly worldwide. Some 82 countries are reported to be involved in the evolution of digital currencies, with more expected to join.
(ended on March 20).
39 IRAN Country Report July 2022 www.intellinews.com