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Iran's digital rial launch boosts global payment integration

Iran's digital rial launch boosts global payment integration

GrafaGrafa2024/11/26 10:00
By:Liezl Gambe

The Central Bank of Iran (CBI) is set to launch the digital rial, as confirmed by CBI Governor Mohammad Reza Farzin during the 11th annual conference on modern banking and payment systems. 

This central bank digital currency (CBDC) aims to modernise Iran’s financial system and enhance its international financial connectivity, despite the challenges posed by global sanctions. 

Governor Farzin emphasised the digital rial’s role in advancing banking practices and its imminent deployment, commending the Shetab payment network for its efficiency, which can process transactions in under two seconds. 

The digital rial, which has been trialed on Kish Island since June, enables users to perform transactions through digital wallets, eliminating the need for physical cash or cards and bypassing traditional banking systems. 

This CBDC is designed to facilitate direct user-to-user transfers, enhance payment security, and support Iran’s expanding digital economy. 

Addressing the impact of international sanctions, Farzin introduced the “ACU-MIR” system, developed to facilitate transactions with countries like India and Pakistan. 

"Sanctions remain a significant hurdle, but we've made notable strides in recent years... We've replaced SWIFT with this platform and strengthened our ties with BRICS, which is shaping global trade with a strategic plan through 2025," he stated.

The integration of Iran’s Shetab network with Russia’s MIR system marks a key development in cross-border payment capabilities. 

"Recently, Shetab connected with Russia’s MIR, and several banks are now operational on the system," Farzin noted, outlining plans to expand access to these systems for Russian and Iranian tourists by 2025. 

This move is part of Iran’s broader strategy to improve its financial integration with international markets.

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