Bitcoin Forum

Iran is planning to aunch Crypto Rial for across boarder transaction

The central bank of Iran sponsor a bill that, they are to launch crypto rial pilot in the country to test run their economy. But they are using stablecoin.

 The Central Bank of Iran (https://www.google.com/amp/s/www.pymnts.com/cryptocurrency/2022/today-in-crypto-iran-launching-crypto-rial-pilot-stablecoin-bill-wont-include-digital-dollar-push/amp/)
https://i.imgur.com/lgI8EO8.jpeg

That will be nice. That is cryptocurrency mostly bitcoin is gaining ground in the space.

Iran is trying the other option for their currency and this one might be their way to avoid sanctions from other countries especially with US. This can be good for their own people but in general, this might not affect that much especially it is a centralized crypto where the government have a full control of it. This is still a good news though, you just need to have more research though before adopting, just to be sure that your money can be safe.

This wont really be making any effect into Bitcoin because anything which is centralized cant really be considered to be a crypto.They are just simply creating a digital fiat in behalf of that name or idea

but we arent that dumb on not to make out those obvious differentiation in between decentralized and centralized stuffs.Come to think about that Digital Yuan which does China have.
It would really serve on the same purpose on what they had created that digital Rial and it cant really be considered to be a crypto frankly speaking.
Not surprising on this kind of act though but rather a typical one.

For a country to stay against the sanctions, it is a good choice. The usage is limited and it serves to be something as the digital form of banking. For the government it will be really good, because everything can be kept in their control. Even with fiat this isn't possible. A positive approach for a cause. Lets see what change crypto Rial making within the country.

Is the type that will be launched by Iran different from the CBDC? this means iran prefers to create stablecoins for their country's currency rather than CBDC. like that?

This is refreshing news in my opinion. because I recently also read news related to Iran which has officially approved the use of crypto in import transactions. looks like middle eastern countries are really open with cryptocurrencies. if you want to read the full news regarding iran which agrees on the use of crypto. here is the link. ( Iran Officially Approves Use Of Crypto For Imports (https://https://zycrypto.com/iran-officially-approves-use-of-crypto-for-imports/)).

And not just in the middle east. it turns out that Russia has also approved the use of crypto for cross-border payments. I just read it. slowly more and more countries will be very open and supportive of crypto. because gradually everyone will realize the importance of being able to make cross-border payments. if you want to read it too. here is the link. (Cointelegraph (https://cointelegraph.com/news/russian-officials-approve-use-of-crypto-for-cross-border-payments-report))

This is a crypto version of CBDC with the same functionality. But they seem to be trying to reach the mainstream of the future rather than other countries' CBDCs, another news (https://www.kitco.com/news/2022-09-21/Iran-to-launch-a-pilot-for-its-Crypto-Rial-on-Thursday.html) mentions that their currency will use blockchain as the network basis.
And after all this is a type of crypto that may not be valid in certain countries due to a full ban. Calling it "cross-border payments" is a bit of a misnomer.

If you think about it, it really isn't that any different. CBDCs are centralized, and at the same time most stablecoins are centralized as well anyway. Even stablecoins can be frozen even if you're using a non-custodial wallet. https://bitcointalk.org/index.php?topic=5204055.0

The plan is already half a decade old, it is ready for live test now.

Technically these are called CBDC not stablecoins although they are stable!

It depends on how you defined "nice". Govcoins and centralized coins are never "nice" when we are talking in the decentralized context that includes bitcoin.
Economically speaking and what has been going on in the new world order and the geopolitics, that has some "niceties" to it but it is too soon to judge.

Wrong. That is not how you evade sanctions. The actual way is to stop using US dollar and trade with everyone else that is not US or its colonies.

Not bad for a country adopting blockchain technology. But it would've been better if the Iranian government will back bitcoin too and legally accept it as a currency.

Are we expecting more CBDCs from many countries and faster than countries considering bitcoin as a legal tender? Many countries already have plans to launch their own CBDCs. Somehow I am expecting two to three more countries in a year or two to follow El Salvador and the Central African Republic in legalizing bitcoin as a currency.

If you ask me I would say, that's just a joke. The inflation rate is very high in Iran and people won't trust any type of currency that is related to their government because they think if they hold they will have problems even with supplying food and first needs, now the Iranian central bank is launching the digital rial(It's not crypto rial) which is same as the traditional fiat rial and this can be just because of the interest in cryptocurrencies in this country.

Of course people have difficulties trusting government and the financial institutions for a long time because of the way the state affairs are being handle. Fiat is compulsory for every citizen of a country to have in other to be able to transact successfully even though people don't trust it, but in the case of this digital currency, it will be more of an optional thing since there is a legal tender.

The problem with inflation is all over the world and not only affecting a particular country, and the solution does not lie in the hands of a single country either, even if the government of Iran want to fix the issue with inflation, they will not achieve much since this is a global issue. The reason behind the launch of a digital currency is to support the economy, perhaps it can give closure on how to solve economic problem, the potential of blockchain is unlimited if applied properly.     

They do and don't at the same time, it is a little weird. Bitcoin is recognized as a currency and is officially used for foreign trades. Bitcoin mining is recognized and has been done done in Iran for the past couple of years as a regulated and legitimate business. People trade bitcoin freely since there is no laws against it.
And yet bitcoin is not yet completely regulated as a currency for domestic use and I don't think it is going to happen either.

You already contradicted yourself. It's not about trust, inflation or anything like that either. People of any country use their own national currency regardless of its form (physical, digital or crypto).
BTW it's already available  for use through 2 banks and some people are using it to purchase goods in this testing phase.

It is called "رمزریال" and "رمز" is the equivalent of "crypto" in Farsi so it is Crypto-Rial.

Actually Iran's inflation is different since it has been high for a long time and existed before this recent global one. But also difference in the sense that over the past year it has significantly decreased, even more so during the past couple of months. In fact Iranian Rial went up about 17% against US dollar as dollar has been tanking hard over the past 6 months which contributed more to decreasing Iran's inflation.

The report contains a lot of false information, and such news is not related to Bitcoin in any way.

The problem of Iran is the economic sanctions, which need to make a lot of effort to avoid them. Doing an idea such as creating an independent currency, a decentralized currency, a digital currency and other ideas will not solve the problem because no one wants to deal with Iran or are afraid to deal with it.

Such solutions will not be smart except in the natural situation.

Not a joke but the information might be incorrect or misleading because you said it wasn't related to crypto but anyway not only in Iran where the inflation rates are high but this issue is felt globally.

There must be people that will try to use the newly issued currency because it's related to their government. They will assume that it's more trusted than any other currencies out there but if all what they what is to hodl then that's a different story anymore. Government owned currencies are I think different from cryptos. They don't have a limited supply so they won't work well in terms of hodling/investing but they can function well in terms of payment use.

Technologically, of course, an interesting project. But there are a few caveats...
First: the purpose of this project is clearly not the promotion of promising technologies to the masses, but an attempt to avoid sanctions.
But there is a nuance - in the United States, a group has been created, called the “Digital Asset Coordinators Network”, which will be led by the National Cryptocurrency Enforcement Group (NCET) of the Department of Justice. There is an assumption that this group will deal with just such solutions.

And the second is whether this project will be implemented, given its purpose, and the current situation in Iran itself. Today there was information that in the capital of Iran, Tehran, the Khomeini regime fell and the capital was liberated.

This is a desperate move for Iranian government to escape such sanctions and yes, the US government is tightening their regulations when it comes to cryptocurrency and they will hire thousands of employees to combat this crypto fraud and probably to address this issues as well. The situation in Iran is getting worse, having their own centralized cryptocurrency might not help that much, this might force other countries to impose another sanctions against them.

This digital Rail would be accepted because it is needed by the people to carry out financial transactions. But it would never be used as an alternative to bitcoin because it is backed by unreliable rail. Due to the economic sanctions, the currency has continued to lose its value. In 2015 Iranian rial was traded at 32,000 to the dollar. But as of June this year it is now 332,000 to a dollar.

Iranians would always use bitcoin as a hedge against inflation. A similar thing happened in my country where the government introduced the electronic version of our currency, which was backed by our weak currency. My countrymen used it for business transactions but bitcoin transactions kept increasing.   Nevertheless, it is a piece of good news for the crypto space.    

Is this even a cryptocurrency? In any case, this isn't like Bitcoin. Bitcoin is gaining ground and has established a huge body of followers but it is mainly because of features that are most probably not found in this digital Iranian rial.

For one, this digital rial is not decentralized; it is issued, distributed, monitored, and controlled by the Iranian central bank. So while, just like Bitcoin, this digital rial could be used for cross-border transactions, this doesn't in any way represent freedom. I suppose only sanctioned transactions would only be allowed. The rest could easily be aborted or cancelled or rejected depending on the approving authority.

It seems that the country of Iran is becoming more open to the cryptocurrency industry. Or maybe they see the potential trend of crypto that will help a lot in the future in countries that accept the concept and system that exists here.

This is a good decision made by the country of Iran, I just didn't notice what kind of stablecoin they are thinking of making and what name could it be. do you have any idea OP?

whether its CBDC or a stablecoin, it will be digital and Iran is not going to be left out of the financial exclusion. this is the way to make their country part of the network. i think oil producing country like Iran will do exactly like this for them to benefit and get financial freedom.

Iran may likely supply gas to EU with this stablecoin they have as payment. Free from payment network they do not control.

So a digital currency that is almost the same as CBDC. Well that would just be another stable coin that uses blockchain to facilitate transactions. Nothing new here. Just another centralized currency that the government will use to control the funds and money of their citizens.

In what sense is that going to be nice? We already have stable coins. I doubt it will cause any effect on the price of bitcoin.

Iran is getting screwed by the US sanctions and their people thanks to the recent hijab controversy which is why it makes sense why they are thinking about launching their own CBDC basically.

Anyone with a half-decent brain would immediately realise the fact that this is a coin meant for their government(Not their people) similar to other centralised cryptocurrencies.

Personally, I would never use this particular cryptocurrency since I find it hard to trust a crypto which relies on such a trash government.

This is what I have been supporting as well, people are seeing what they are seeing as a way of making money from stablecoins that are controlled by companies, but when it comes down to stablecoins made by governments they are not really attracted to it at all.

I have to say I will stay away from both of them as much as I could, there is no need to invest into something that is centralized and it doesn't make any sense at all. But at the end of the day if we are talking about picking or choosing one of them than it means I am going to end up with government managed ones because they are still more trustworthy than some random company that created some coin.

Such decisions are more like self-deception. Well, at least a means for "calming the masses" that "everything will be fine with us" ... But it will not be either calm or good for the current ruler.
I never understood why, instead of making normal decisions and creating a normal life for their citizens, some rulers try to do extremely idiotic things, drive their population into the Stone Age and then "heroically fight" with the whole world and deny reality!?

I see one by one country starting to accept crypto as a currency to make transactions in that country. Most are tested by private companies. If the use can run normally, of course the bank under the authority of the government will use crypto especially stable coins. If Iran's central bank planning can run normally, then the next practice will be carried out by other countries in the world.

I see one by one country starting to accept crypto as a currency to make transactions in that country. Most are tested by private companies. If the use can run normally, of course the bank under the authority of the government will use crypto especially stable coins. If Iran's central bank planning can run normally, then the next practice will be carried out by other countries in the world.

This provides a great opportunity for all of us who are one step faster to get to know crypto. Of course with conditions like this, Bitcoin and other crypto transactions will increase.

It is not a  cryptocurrency, but a digital currency, which means that it is a central currency that is completely controlled by the Central Bank of Iran and therefore is completely in the hands of the government. Most governments seek to launch their own central digital currency because this increases the government’s control over all financial transactions in the country, this is completely different from Bitcoin and Decentralized cryptocurrencies which is outside the control of the government.

The difference is that we are not talking about a fiat currency that the whole world could use, helped with a digital currency that could get you some.

Normally you could buy dollars anywhere in the world, it's the most used foreign currency for any nation, and instead of that, we are going to have a nation which has been sanctioned off for many decades now, and that means we are going to have the digital version of it where I could finally get my hands on. Not that I would, because I have no reason and I dislike all fiats, there isn't a single one I like, but I used to not have the chance to do it if I wanted to, now with this new digital one, I could if I want to.

Okay so similar thing to what FED thinking, what India thinking, what Russia, El Salvador, Africa and the non ending list where they want to launch their own crypto currencies so that they can take the bitcoin down and ask peeps to invest in the Government Controlled Crypto. I have started to feel like they are all interconnected back on the stage and now slowly step by step they are asking random countries to spread the news about their own crypto launch. Lolz. So sooner or later every country will have their own crypto currency and bitcoin would be off the grid. Ahh, I’m kidding but it’s nothing much, anyways Congo to Iran.

I doubt they have any plans to do something like that, governments are very conservative by nature and they will not adapt to the changes in their societies unless they are basically forced to do it, and about the issues of legal tender personally I think this will take more time, both El Salvador and the CAR are both way ahead of the game so I do not expect any other country to follow on their footsteps, as they will remain on the fence and see how things evolve in both of those two countries.