Iran Will Not Allow Crypto Payments, Prepares to Pilot Digital Rial – Finance Bitcoin News

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Iran Will Not Allow Crypto Payments, Prepares to Pilot Digital Rial
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A senior government official said Iran would not recognize cryptocurrencies as a means of payment. His statement came as the Central Bank of Iran announced rules for the issuance of digital coins in the country. However, these are for its own “cryptocurrency,” whose pilot phase should begin in the near future.

Iranian Minister Says Accepting Crypto Payments Is a Red Line

Cryptocurrencies like Bitcoin are not considered legal tender in the Islamic Republic of Iran. Iranian Deputy Minister of Communications Reza Bagheri Asl emphasized while discussing regulatory matters related to the storage and exchange of cryptocurrencies:

We do not recognize payments in cryptocurrencies.

The government official is commenting on the latest resolution of the Digital Economy Task Force on cryptoassets. He pointed out that the use of any foreign currency is beyond Iran’s sovereignty and violates Iran’s currency and banking laws.

“Therefore, we will never have any provision to recognize payments made with cryptocurrencies that do not belong to us,” Iranian financial news portal Way2pay quoted Bagheri Asl as saying. “Iran has its own national cryptocurrency, so non-state cryptocurrencies will not be used. cryptocurrency for payment,” he insisted.

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The deputy minister added that in order to prevent Iranian citizens from being at risk, digital asset trading in the country will be governed by a series of rules similar to those that apply to the stock market and other currencies. “Cryptocurrencies must be regulated and must comply with the banking system,” he added.

Central Bank of Iran shares details on digital rial project

Authorities in Tehran have considered allowing Iranian companies to use decentralized digital currencies to settle settlements with foreign partners in the past as a way to circumvent Western financial sanctions. However, their current focus is on launching a digital version of the country’s fiat currency, the rial.

The Central Bank of Iran (CBI) recently informed banks and other credit institutions about regulations related to “cryptocurrency” that have been in development for some time. They are suitable for the minting and distribution of Central Bank Digital Currencies (CBDC). CBI will be its sole issuer and will determine the maximum supply.

According to Way2pay, the digital currency is based on a distributed ledger system maintained by authorized financial institutions and capable of executing smart contracts. The publication unveiled the infrastructure and guidelines for a CBDC, which will be piloted in the near future.

The report states that the cryptocurrency rial will be issued in accordance with legal provisions governing the emission of paper money and coins. The CBI will monitor the economic impact of digital currencies and manage their impact in accordance with the authorities’ monetary policy. Users will only be able to transact with CBDC within Iran.

tags in this story

authorities, CBDC, cbi, central bank, crypto, crypto regulations, crypto rial, cryptocurrency, cryptocurrency, digital rial, government, guide, iran, iran, minister, pilot, regulations, rules

Do you think the Iranian government can change its stance on cryptocurrencies like Bitcoin? Share your thoughts on the topic in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

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