The Central Bank of Iran (CBI) has announced the launch of a national digital currency. This new currency, called the digital rial, is part of a public pilot aimed at improving domestic micropayments.
Pilot Begins on Kish Island
Starting June 21, the digital rial will be available to banking customers and tourists on Kish Island. This date marks the beginning of the Iranian calendar month of Tir. Kish Island, covering 92 square kilometers, is the second largest island in the Persian Gulf and a major tourist destination, attracting around 12 million visitors each year. It is part of one of Iran’s free trade zones, allowing many tourists to visit without a visa.
In 2021, Muhammad Javad Azari, a former minister of information and communications in Iran, suggested turning Kish into a hub for domestic and international cryptocurrency exchanges. This new pilot could be a step towards that vision.
Features of Iran’s Digital Rial
The public rollout of the digital rial on Kish Island is an extension of a pilot program that began in 2023. With this new currency, users can pay for goods and services by scanning a barcode through special software. Unlike other electronic money in Iran, which requires interbank settlements, the digital rial allows direct transfers between buyers and sellers, making payments faster and more secure.
The digital rial aims to develop Iran’s digital economy and improve payment methods. It is expected to enhance resilience and stability in the country’s payment infrastructure, improve efficiency in micropayments, and manage risks from private money. The CBI has stressed that the digital rial will be used only within Iran’s borders to facilitate domestic micropayments.
