Iran Tests Digital Currency for Tourists and Locals
Iran made its first step in the world of digital currencies through a pilot program that will be launched in Kish Island, a famous tourist spot due to its free trade zone.
Commencing on June 21st, the program will allow residents and visitors to use the “digital rial” as their everyday currency.
The digital rial is expected to be faster and potentially more convenient than cash or traditional bank cards for payments. Instead of card swiping or cash payment, users just need to scan a barcode using special software. While ordinary electronic payment methods being used across Iran currently require virtually manual settlement between banks, the digital version goes straight from one wallet to another; thus transacting instantaneously.
The pilot program is intended to serve as an intermediary in launching the digital rial all over Iran. The new currency is projected by Central Bank of Iran (CBI) to increase efficiency in small transactions leading to robust economy within Iran that can easily embrace digital trends. Moreover, CBI brings forward how it can improve security and enhance overall stability of payment infrastructure.
READ MORE: Turkish Bank Introduces Crypto Wallet and Biometric Payments
It should be noted here that Iran’s relationship with cryptocurrencies such as Bitcoin remains complicated. Though trading them is allowed by government these cannot be used within national borders for making payments. Also, crypto mining activities are regulated within Iran whereby some US officials worry about potential abuse of this technology by Iranian Authorities against international sanctions.
Therefore, launching the digital rial pilot project at Kish Island represents an interesting twist in Iran’s financial landscape. This may set a stage for broader acceptance of the cryptocurrency in-country after evaluating successful implementation during this phase thus shaping future government position on cryptocurrencies particularly Bitcoins if any at all.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
