Iran debuted the digital currency "CBDC" on Sunday at a ceremony attended by Mohammad Reza Farzin, Governor of the Central Bank of Iran (CBI), and other prominent bank CEOs.

The digital funds, which are comparable to a banknote, are issued electronically by the Central Bank of Iran.

Earlier, the CBI stated that it intends to develop a digital currency to ease purchases for customers of the country's banking network.

According to the CBI, a prototype version of its electronic currency was ready for deployment on the island of Kish in southern Iran after several years of development and testing.

The CBI expects that the pilot platform will allow the bank to eventually introduce a digital version of Iran's national currency, the rial.

Iran's Mellat and Tejarat banks will participate in the trial project in Kish, which will be started in July.

The Central Bank of Iran has declared that the digital rial would be utilized for retail transactions, such as purchasing products and services. Iran launched its digital currency program in 2021, following preliminary investigations and clearance from the country's High Council of Money and Credit. The CBI stressed that the digital rial's debut seeks to boost Iran's digital economy and payment infrastructure.