TEHRAN - Iran unveiled the digital currency “CBDC” in a ceremony on Sunday attended by Governor of the Central Bank of Iran (CBI) Mohammad Reza Farzin and some senior CEOs of the country’s banks.

The digital currency is similar to a banknote, committed by the Central Bank of Iran in an electronic form.

Earlier, the CBI said it is planning to introduce a digital currency to facilitate purchases for the clients of the banking network in the country.

According to the CBI, a pilot version of its digital currency was ready to be rolled out on the island of Kish, southern Iran, after several years of work and studies on the program.

The CBI hopes the pilot platform could enable the bank to finally launch a digital form of Iran’s national currency the rial.

Iran's Mellat and Tejarat banks will contribute to the pilot project in Kish, which is to be launched in July.

The Central Bank of Iran announced that the digital rial will be used for retail transactions, including purchasing goods and services. Iran initiated its digital currency program in 2021 after preliminary studies and approval from the country’s High Council of Money and Credit. The CBI emphasized that the digital rial’s launch aims to bolster Iran’s digital economy and strengthen the resilience of its payment infrastructure.

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