Iran Prefers To Use Own ‘Crypto Rial’ Than Bitcoin for Payments

The Islamic Republic of Iran continues to push for its “crypto rial” on Monday, while an Iranian minister reiterated that the country has no plans to accept Bitcoin and other cryptocurrencies as payment.

The Central Bank of Iran (CBI) recently announced that it has informed banks and credit institutions about the regulations of its digital coin crypto rial. The crypto rial is Iran’s prospective central bank digital currency (CBDC).

Reports suggest that the rules cover the minting and issuance of this digital currency. The rules specified that the crypto rials will be minted and their maximum supply will be decided by the CBI alone.

The country had previously said that crypto rial was to become its new currency, similar to fiat but digital. As such, Iran’s Communications Deputy Minister Reza Bagheri Asl stressed that they “do not recognize payments with cryptocurrencies.”

The country is sticking to the fact that it does not need another digital currency. The minister said:

Iran has its own national cryptocurrency, so no payments will be made with non-national cryptocurrencies.

Bagheri Asl expounded that the use of foreign currency is outside Iran’s financial jurisdiction and is illegal. “We will by no means have any regulations recognizing payments with cryptocurrencies that do not belong to us,” explained the minister.

However, the Iranian official clarified that cryptocurrencies could be regulated like the stock market to prevent risks for the citizens. “Cryptocurrencies must be regulated and banking systems must be observed, he added.

Authorities from the nation’s capital Tehran, in the past, had considered permitting local businesses to engage in transactions with foreign partners with cryptocurrencies to hurdle Western sanctions.

Nevertheless, Iran is now more focused on launching its crypto rial, which users can only use within the country’s territory.