Iran's central bank is gearing up to launch a public pilot for its digital currency, the digital rial, which will revolutionize cashless transactions for banking customers. The Central Bank of Iran (CBI) has announced the operational phase of its digital currency, aiming to modernize and simplify domestic transactions.

The pilot, set to begin in July, will allow banking customers and tourists on Kish Island to make purchases and transfer funds using digital wallets and QR codes. The digital rial is designed to enhance the resilience and efficiency of the region's payment infrastructure, creating new business models, particularly in e-commerce and the digital economy.

Iran's central bank has been testing its digital currency since 2022 in a limited pilot phase, which started in June 2023. The CBI claims its state-controlled digital currency not only increases payment security but is also much simpler than traditional card payment methods.

The development of the digital rial has been ongoing since 2018, with the Iran-based Informatics Services Corporation (ISC), a subsidiary of the Central Bank of Iran, responsible for developing the central bank digital currency platform (CBDC). Despite facing sanctions from the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), the project continues to move forward.

The digital rial is expected to bring significant benefits to the region, including increased payment security and simplified transactions. With its launch on Kish Island, Iran is taking a major step towards embracing digital currency and enhancing its financial infrastructure.