Conceptualizing the Central Bank of Iran’s Policymaking Model for Cryptocurrencies to Foster Trade and Commerce

Objective
Over the past decade, the development of blockchain technology and the emergence of cryptocurrencies have brought about significant transformations in global financial and banking systems. This innovative technology, while providing new economic and financial opportunities, has also introduced substantial challenges in the fields of regulation, economic stability, and risk management. Among the major economic opportunities stand the facilitation of international transactions, the elimination of traditional intermediaries in payment processes, the reduction of money transfer costs, and the enhancement of the speed and efficiency of payments. Moreover, cryptocurrencies expand access to financial services for individuals excluded from traditional banking systems, potentially playing a vital role in economic development and financial empowerment of diverse social groups. Conversely, severe price volatility, potential misuse of cryptocurrencies for illegal activities such as money laundering and terrorist financing, and the absence of clear legal and regulatory frameworks pose serious threats to the stability of financial systems and public trust. Accordingly, this study seeks to identify the key factors that influence the adoption and utilization of cryptocurrencies within Iran’s banking system, while also examining the associated legal, technical, and regulatory challenges. The research seeks to provide a comprehensive picture of the opportunities and constraints associated with this technology and propose strategies for its effective utilization.
 
Methodology
This study employs a qualitative, exploratory research approach. Data were collected through semi-structured interviews with 15 experts in the field of cryptocurrencies, including investors, managers of crypto exchange platforms, signal analysts, university professors (with at least a PhD and ten years of experience in economics, finance, or policymaking), and policymakers affiliated with the Central Bank of Iran and related institutions. A snowball sampling method was used to ensure diversity in the participants’ professional and technical backgrounds. The collected data were coded and analyzed using MAXQDA software. Initially, open coding was conducted, followed by axial coding to extract the main themes, which were then organized into a network of conceptual relationships. This approach enabled a structural and in-depth analysis of expert perspectives and the identification of interconnections among technical, legal, and institutional factors.
 
Findings
The findings indicate that the successful implementation of cryptocurrencies requires a set of institutional, technical, and educational prerequisites. Key requirements include the establishment of clear and enforceable regulations, strengthening of technical and cybersecurity infrastructures, the enhancement of public awareness and financial literacy, and the development of protective mechanisms to prevent common fraudulent activities. Furthermore, international cooperation and the formation of independent regulatory bodies play an essential role in mitigating financial risks and attracting foreign investment. In addition, the absence of a defined taxation framework, legal ambiguities regarding digital ownership, and a lack of transparent guidelines for the operation of crypto exchanges and digital wallets were identified as major barriers to the sector’s development in Iran.
 
Conclusion
The results suggest that achieving sustainable and effective cryptocurrency integration within Iran’s banking system requires policymakers, legislators, and economic actors to adopt a comprehensive, balanced, and localized approach. The conceptual model developed in this study explains the interrelations among technical, legal, and educational factors and can serve as a foundation for formulating practical and effective policies in the cryptocurrency domain. Ultimately, simultaneous attention to both opportunities and risks—alongside the establishment of robust regulatory and supportive mechanisms—can foster public trust, attract investment, and enable efficient economic utilization of this emerging technology in Iran.