Ismail Allahgani, one of the country’s banking managers, referring to the Central Bank’s view on digital currencies, said that the Central Bank of Iran is also launching a national digital currency so that it can use it like Swift.
According to digital currency and to Quoted From October, Ismail Allahgani said this morning at the Islamic Banking Conference regarding the Central Bank’s view on the currency code:
Central banks around the world have moved to pay attention to the currency code. The International Monetary Fund and the World Bank also addressed the issue of currency cryptocurrencies, and 80 central banks around the world issued currency cryptocurrencies with the support of the central bank.
Allahgani stated that the central bank should also issue a special currency code:
The central bank’s cryptocurrency is the digital equivalent of the official currency of each country, which must meet conditions such as global acceptance and be issued by central banks.
The CEO of the bank affiliated to the Ministry of Welfare emphasized:
The specific codes of each central bank or CBDC are published in two types of wholesale and retail by central banks. In developed countries, due to the possibility of offering the wholesale type in international networks, more people have moved towards using this model.
“CBDCs can be used offline,” he said.
Unlike cryptocurrencies, CBDCs, like the common coins and banknotes of any country, have official digits and are credited and backed by the central bank. Central banks either issue CBDCs directly and provide them to the customer, in which case the role of the banks is diminished or the central bank is merely the issuer and offers the financial institutions as intermediaries of the CBDCs.
Allahgani said that another benefit of publishing national cryptocurrencies is reducing the cost of printing money and reducing the risk of electronic exchanges in the private sector, adding:
CBDCs also have threats that include the possibility of network insecurity, difficulties in gaining public trust, the possibility of misuse and money laundering by cryptocurrencies, and the weakening role of banks.
The CEO of this semi-public bank stated:
CBDCs can be effective in maintaining the value of the national currency. Whether we like it or not, people are paying attention to these cryptocurrencies and are entering the cryptocurrency market, and if the central bank does not act, the preservation of the value of the national currency may be hurt.
Emphasizing that CBDCs are offered in the blockchain platform, he noted:
It is possible to use the CBDC simultaneously as the national currency issued by the central bank and the common cryptocurrencies in the world, but the central bank can be actively involved in liquidity management with the CBDC.
لله گانی added:
You need to be more proactive in dealing with cryptocurrencies that are evolving every day. Of course, licenses have been issued for currency mining in the country, but we do not have instructions for its transfers and cashing the currency code.
We should be able to publish the Rial in the form of a currency code and use this tool in bilateral agreements with neighboring countries; CBDCs do not require Swift and do not even require a global blockchain. The Central Bank of Iran is launching CBDC, and since blockchain is a global platform and network that can be used like Swift and Telecommunications, we can move towards using CBDCs in the internal blockchain platform. This platform is specific to our country and in the field of international contracts, we can use the capacity of domestic blockchain.