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Central Bank Digital Currency (CBDC): A Study of Potential Opportunities and Threats in Iranian Banking
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Saadat Farhikhteh *1   , Mahsa Bagherzadeh1 , Javad Taherpour2 |
1- Bank Sepah & -
2- Allameh Tabatabaei & - |
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Abstract: (21 Views) |
The introduction of Central Bank Digital Currencies (CBDCs) as an innovative tool in global economies can have diverse impacts depending on each country's unique economic context. Consequently, central banks worldwide are adopting a gradual and cautious approach to implementing CBDC. This research aims to contribute to this ongoing process by examining the potential implications of CBDCs on four pillars of Iran's banking system: Financial Resource Management, Fee-Based Banking Services, liquidity management, and anti-money laundering measures. Considering the developing nature of CBDC technology, data limitations, and a scarcity of experts, this study employs a bibliographic research approach and Narrative review. The findings reveal that CBDCs offer several potential benefits, including increased financial inclusion and access to financial services, programmability, enhanced transparency in financial transactions and anti-money laundering efforts, the ability to implement a digital Rial governance policy, increased payment system efficiency, and reduced transaction costs. Conversely, significant challenges such as negative impacts on financial and monetary stability, increased imbalances, and expanded non-core banking activities may arise. Successful adoption of CBDCs therefore necessitates careful planning and the implementation of measures to mitigate risks and maximize benefits.
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Article number: 3 |
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Type of Study: Case Study |
Subject:
Monetary Policy, Central Banking, and the Supply of Money and Credit (E5)
Received: 2024/10/15 | Accepted: 2025/05/25 | Published: 2025/09/23
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