Iran Finalizes State-Backed Crypto Draft Document

News, Regulation | August 27, 2018 By:

The National Cyberspace Center of Iran has revealed that the draft of the country’s state backed cryptocurrency is now complete.

Last month, the government of Iran announced that it will create its own state-issued cryptocurrency to bypass incoming US sanctions. At the time, Alireza Daliri, Iran’s Science and Technology Department deputy for management and investment, said that the cryptocurrency would back and tokenize Iran’s national fiat currency, the rial. It will be used to “facilitate the transfer of money” to and from “anywhere in the world.”

Local news outlet the Financial Tribune recently reported that Iran’s crypto initiative was led primarily by Iranian president Hassan Rouhani. Saeed Mahdiyoun, the deputy director in charge of drafting regulations for Iran’s Supreme Cyberspace Council, said that the idea of introducing a national cryptocurrency is being actively pursued by Iran’s cyberspace authority.

In April of this year, the Central Bank of Iran banned domestic banks and other financial institutions from offering services to crypto firms or dealing in cryptocurrencies. Mahdiyoun said regulators will soon remove the existing uncertainty around cryptocurrencies, since the central bank is set to release a definitive policy on digital currencies before the end of September.