Digital Rial to be launched soon CBI

Digital Rial to be launched soon: CBI

TEHRAN - The Central Bank of Iran (CBI) intends to launch its digital currency, the Digital Rial, in the near future as part of a larger effort to modernize the country's banking system and improve international financial cooperation.

Mohammad Reza Farzin, the CBI governor, disclosed upcoming plans for the launch of the Digital Rial during the 11th Annual Conference on Modern Banking and Payment Systems, Tasnim News Agency reported.

Speaking at the event, Farzin described the conference as an opportunity to review policies and outline the future trajectory of the banking system.

"As the Governor, this platform allows me to evaluate strategies and set the course ahead. We will incorporate the insights shared here into our policymaking," he said.

Farzin highlighted the strengths and challenges of Iran's banking system, emphasizing its robust digital infrastructure.

"Iran's Shetab payment network, with transactions processed in under two seconds, is among the most efficient in the region," he noted.

He confirmed the imminent operationalization of the Digital Rial, stressing the Central Bank's commitment to advancing modern banking practices.

"Developing innovative banking systems is a central bank's responsibility worldwide, and we are determined to fulfill this duty in Iran," Farzin added.

Addressing international banking interactions, Farzin acknowledged the challenges posed by sanctions but pointed to progress in alternative solutions.

"Sanctions remain a significant hurdle, but we've made notable strides in recent years," he said, citing the implementation of the "ACU-MIR" system.

This platform, designed for Asian financial cooperation, has been positioned as an alternative to SWIFT, enabling transactions with countries such as India and Pakistan.

Farzin explained that the ACU-MIR system became fully operational on October 2 and has bolstered Iran's ability to manage sanctions effectively.

"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 said, adding that the plan focuses on expanding the use of local currencies, creating opportunities for Iran to integrate into the system.

"China and Russia are already advancing in this direction, and we aim to settle transactions using BRICS currencies," Farzin noted. He also mentioned a cross-border settlement platform currently in its early stages, which could further facilitate international financial exchanges.

Regarding regional connectivity, Farzin detailed efforts to link Iran's payment network Shetab with Russia's MIR system.

"Recently, Shetab connected with Russia's MIR, and several banks are now operational on the system," he said.

While the rollout is still in its initial phases, he expressed optimism about its gradual expansion.

Future plans include enabling Russian tourists to use Iran's point-of-sale systems this winter and allowing Iranian tourists to access Russian POS services by early 2025.

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source: tehrantimes.com