Enhancing the Banking Sector
This move is a key element of Iran’s broader strategy to enhance its banking sector. Farzin highlighted the need for innovative banking solutions, revealing that efforts to develop the digital rial have been underway since 2018. The CBI is employing the open-source Hyperledger Fabric technology for this initiative. In a notable step forward, a pilot program for the digital rial began in June 2024 on Kish Island, a free trade zone that draws a significant number of tourists.Collaborations Amid Sanctions
Despite the hurdles posed by international sanctions, Farzin exudes optimism about the CBI’s advancements. He pointed out a recent collaboration between Iranian and Russian payment systems, which serves as an alternative to the SWIFT network. The Iranian Shebat payment system has earned a reputation as one of the quickest in the region, processing transactions in less than two seconds. It is now starting to integrate with Russia’s MIR payment system.Future Prospects for Cross-Border Payments
In addition to this collaboration, Iran and Russia are exploring ways to strengthen their cross-border payment strategies. Discussions are underway regarding the potential creation of a gold-backed stablecoin and the use of cryptocurrency for international trade. However, these endeavors carry the risk of violating sanctions imposed on cryptocurrency exchanges operating within Iran.Source: Cointelegraph.com
