There has been widespread speculation about a Rial-backed cryptocurrency, as post-bank officials and the Ministry of Communications have been sharing views on a domestic digital currency in Iran. However, they have not stated any details so far. We will continue to examine significant features and the nature of the Iranian digital currency, Toman coin.
According to Bank-E-Mardom financial news agency; Iran’s Chief executive officer of Informatics Services Corporation (ISC), Seyyed Abotaleb Najafi, pronounced that the state-backed cryptocurrency “can be used in a distributed and one-to-one framework for transferring without any institute’s interference.”
Najafi stressed that the state cryptocurrency is still in a pilot phase. It has primarily been developed to explore the capability and usefulness of digital coins and the blockchain technology that underpins them in facilitating financial payments, bank-to-bank settlements, and retail banking.
the Iranian state-issued cryptocurrency is backed by the regional fiat currency, Rial, and it cannot be mined.
The picture below shows a visual description of a national currency, compared to other digital currencies in the market.
In the end, we should also mention the benefits of Tomancoin for Iran’s economy, such as using less paper money, attracting investors, managing current liquidity in the economy, and establishing KYC on the blockchain.
The creation of a national digital currency is the first step in moving Iran’s banking system toward blockchain technology, which in this perspective can bring a lot to the future of banking in Iran.