Crypto Rial of a new front in the struggle of central banks against cryptocurrencies.

The government in Tehran is taking steps in preparation for the launch of Iran’s new digital currency, referred to as the crypto rial.

PAZH | The rial was first introduced in 1798 as a coin worth 1,250 dinars or one-eighth of a toman.
In 1825, the rial ceased to be issued, with the qiran subdivided into 20 shahi or 1,000 dinars and was worth one-tenth of a Toman, being issued as part of a decimal system.

The rial replaced the qiran at par in 1932, subdivided into 100 new dinars.
Prior to decimalization in 1932, these coins and currencies were used, and some of these terms still have wide usage in Iranian languages and proverbs.

As of June 2020, the Iranian rial has fallen almost five-fold since the beginning of 2018 and contributing to the record inflation. The reason cited by analysts is the fact that the government has been printing money in excess of the economic growth.

Iranian authorities are taking the necessary measures to launch a pilot of the crypto rial as of the month of Shahrivar, according to the Persian calendar, which starts on Aug. 23, Governor of the Central Bank of Iran (CBI) Ali Salehabadi told reporters on Friday.

Quoted by the English-language Iran Front Page news portal, the top executive emphasized that Iran’s digital currency will be different from the decentralized global cryptocurrencies. It is solely designed to “replace the banknotes that the people currently possess,” he noted.

This Iranian digital currency uses some technologies similar to cryptocurrencies, but it has significant differences too.

Digital Rial cannot be extracted, unlike cryptocurrencies such as Bitcoin Bitcoin and Ethereum.

The Central Bank of Iran controls Digital Rial.

What is the Central Bank of Iran looking for with Digital Rial?