09 November 2018 - 11:48

Iranian National Cryptocurrency to be Granted to Commercial Banks

CEO of Informatics Services Corporation said Iran's national cryptocurrency will be handed in banks for financial exchanges.
News ID : 93449
ارز رمزنگار ملی

Talking to IBENA's reporter, Seyyed Abotaleb Najafi said the national cryptocurrency has been developed and designed by Informatics Services Corporation at Central Bank of Iran's request to be utilized new technologies in expanding banking system services . He stated that the national cryptocurrency is issued by the central bank and can be used in a distributed and one-to-one framework for transferring without any institute's interference.

The official went on to say that the objective for developing this infrastructure is feasibility and evaluation of blockchain and cryptocurrencies' capabilities for developing financial and payment services in Iran's banking system in interbank level and retail banking.

Najafi stressed that Iranian national cryptocurrency is in a pilot stage and after getting Central Bank of Iran's approval will be used in the country's banking system, adding in the first phase the blockchain banking infrastructure will be granted to Iranian commercial banks to use it as a token and payment instrument in transactions and banking settlement.

Regarding the national cryptocurrency, the CEO of Informatics Services Corporation made the remarks that support is highly important issue in cryptocurrencies, so for Iranian national cryptocurrency, rial has been chosen as a support, namely in exchange for each single national cryptocurrency unit, its rial equivalent in the central bank's account is blocked, therefore, it never creates liquidity. 

He highlighted that at the present the electronic banking services have been developed well in our country and the development is underway, but the country has a great distance with digital banking processes.

"In order to realize renovation and create new infrastructure in our banking system, banks' back end processes which is still in paper and traditional way should be changed and evolved", Najafi said.

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