Page 40 - IRANRptAug22

Iran announces upcoming launch of digital rial pilot project
market in downtown Tehran’s Ferdowsi Street, the home of money changers in the city.
As the rial has sunk, the cost of living crisis in Iran has continued to swell, sparking a series of further protests. The latest protests saw merchants across the Grand Bazaar area of downtown Tehran on June 12 demonstrate against the perceived poor handling of rising prices by the government.
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.
7.1 Cryptocurrency
Iran to hold international conference on metaverse
The first Iranian international conference on the metaverse, “Metarad”, is to be held on June 20 in Tehran, IRNA reported on June 1, citing the head of the Iran Labour Centre (ILC).
Iran is widely viewed as extremely advanced in metaverse development. Large contingents of Iranians work in the sector, using cryptocurrencies to earn an income from it, thus dodging US sanctions.
The metaverse is an iteration of the internet as a single, universal and immersive virtual world facilitated with virtual reality (VR), augmented reality
40 IRAN Country Report August 2022 www.intellinews.com