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The Governor of the Central Bank of Iran says that the bank is concurrently working on four major areas

The Central Bank of Iran’s Main Plans

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The Governor of the Central Bank of Iran says that the bank is concurrently working on four major areas: electronic banking, monetary policy, modification of banking system, and foreign currency market.

Abdolnaser Hemmati attended the closing ceremony of the 8th annual Conference on Electronic Banking and Payment Systems along with Ali Divandari, head of the Central Bank Monetary and Banking Research Institute.

Making the remarks as the keynote speaker of the event, Hemmati said, “We will bring all four aspects of e-banking, monetary policy, reform of the banking system and the foreign exchange market together, and everyone gets to see the developments in the near future.”

Hemmati also said the Central Bank is working on fintech and electronic banking system.



The 8th annual Conference on Electronic Banking and Payment Systems wrapped up on Wednesday with Abdolnaser Hemmati

And The Winners Are…

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The 8th annual Conference on Electronic Banking and Payment Systems wrapped up on Wednesday with Abdolnaser Hemmati, Governor of the Central Bank of Iran and Ali Divandari, Head of the Central Bank's monetary and banking institute in attendance.

To name a few, the winners of the conference were as follows:

In the inner banking system,

Pardazesh Ettelaat Noavaran Amin for risk analysis system got the first award and Saderat Bank of Iran stood first for customer benefits and cost analysis.

The First three top startups in that order were: Atlas team, Exir team, and Jibee Mobeh.

And in the innovation category the best teams in order were: Peeaz team, Ramitnes team, and Alef Plus.



Nasrollah Jahangard, Iran’s deputy minister of telecommunications and information technology, said fintech has created great changes in the banking and monetary services.

Jahangard: Fintech create great changes in banking, monetary services

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Nasrollah Jahangard, Iran’s deputy minister of telecommunications and information technology, said fintech has created great changes in the banking and monetary services.
Jahangard made the remarks in the closing ceremony of the 8th annual Conference on Electronic Banking and Payment Systems on Wednesday.
He said that country is faced with an economic war, adding that some states are seeking to create obstacles for Islamic Republic in its economic and cultural arenas.
Pointing to Iran great capabilities and potentials, he added that Iran ranks second in the world in energy resources.
As per the global reports, Jahangard said Iran is becoming the world's most powerful country.
The conference opened in Tehran on Tuesday attended by several high-ranking officials.


The head the Iranian Cyber Police, FATA, reported 85 percent increase in cyber-crime compared to that of last year and said creation of single-use passwords can prevent bank fraud.

One-time-use passwords help secure personal banking information

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The head the Iranian Cyber Police, FATA, reported 85 percent increase in cyber-crime compared to that of last year and said creation of single-use passwords can prevent bank fraud

Mostafa Norouzi on the sidelines of the 8th annual Conference on Electronic Banking and Payment on Wednesday noted it is of importance to protect customer’s personal banking information in electronic banking system and keep them confidential.

Norouzi added that security is a relative issue and has no absolute measure.

He further explained that people’s behavior in the social media can jeopardize their security and warned them to take caution while they use the media.

He addressed some of the challenges before the electronic banking.

The first challenge is unauthorized withdrawal from bank accounts through ‘fishing technique’; although now a newer phenomenon has arrived that can easily sale people’s account information, he explained.

Next is bank card skimming and that is when crooks use a small device to steal credit card information in an otherwise legitimate credit or debit card transaction.

He added there have been talks on increasing the punishment for cybercriminal.

He said FATA is tasked with countering various types of crimes including traditional crimes, traditional-cybercrimes.



Governor of the Central Bank of Iran (CBI) Abdolnaser Hemmati said several banking measures have been adopted for rendering services to Syrian pilgrims.

CBI Chief: Special Banking Measures Adopted for Syrian Pilgrims

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 Governor of the Central Bank of Iran (CBI) Abdolnaser Hemmati said several banking measures have been adopted for rendering services to Syrian pilgrims.
Addressing the 8th annual Conference on Electronic Banking and Payment Systems on Wednesday, Hemmati said so far several monetary agreements have been signed between the Iran and the Syrian Central Banks.
He added that the details of the agreement would be announced later.
Among the topics of this conference are Blockchain technology and Distributed Ledgers, Cryptocurrencies, alternative payment systems, financial technologies, payment and open banking, scam, money laundering, fraud and methods of coping with it as well as digital evolution.
 


Morteza Turk Tabrizi, IT Manager of Bank Mellat stressed the significance of using big data in producing new digital products, adding that banks could generate income via IT technologies.

Iranian IT Manager Highlights Role of Big Data in Digital Banking

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 Morteza Turk Tabrizi, IT Manager of Bank Mellat stressed the significance of using big data in producing new digital products, adding that banks could generate income via IT technologies. 
Addressing the audience in the 8th annual Conference on Electronic Banking and Payment Systems on Wednesday, Turk Tabrizi said digital banking cannot be created or bought in a few days or months.
He added that we are still involved with fintech, big data, customer, as well as process thinking.
“If we use big data, we could produce a product that attracts the customer and generates revenue for the bank,” he added.
 “We can make a difference with a strategic decision in the context of platform and provide more accurate services to the client to render better services to them,” he added.
 


The Prosecutor of the Anti-Cybercrime Judiciary Office has proposed three restrictions on payment companies.

Proposed 3 Restrictions on Payment Companies

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 Mohammad Hossein Dorri, at the roundtable discussion on the “Social Challenges of Electronic Banking” said: "In the current system of laws created by Shaparak and other institutions, many of rules are not followed."
According to Shaparak's regulations, no surveillance camera at the store should monitor the POS device, but in the whole country, there is not a store where the surveillance camera does not observe the device.
The Prosecutor has proposed that companies under the supervision of Shaparak be established and contribute to the monitoring of these cases in order to ensure greater security.
Dorri stated: "A self-controlling system should be created by PSPs; we need Fintech and PSP police, because they are not separated and all are components of one system."
He said: "we are cheering on if the fraudsters transfer their money into account of Fintechs. It is a trap, provided the Fintechs should be self-aware and know when and where to stop them."
"The first limitation for the PSPs is the time limit," said the prosecutor of the Anti-Cybercrime Judiciary, saying that there are several limitations in our proposal for PSPs. In many cases, fraudsters go to the store to charge cards and withdraw money, so PSPs should monitor stores throughout the night."
Dorri added the next constraint in this area is union constraint. Some people withdraw money from coffee nets and cafes, and, for example, they borrowed 100 million Rials, while their guild clearly indicate how much they transactions should be, so PSPs should put restrictions in this regard.
Referring to the third limitation to be made, he said: The third limitation is the time of settlement, which does not allow the current judicial authorities to block the account in case of a problem, in some countries, such as the United States and Canada, the settlement time is up to a month and it takes up to a week with guarantees.
 


The Chairman of the board of ASAN PARDAKHT said that the infrastructure for using the smart card in the banking industry and electronic payment companies should be provided by the Ministry of the Interior and the Civil Registration Office.

Creating Infrastructure for Using National Smart Cards in the Banking Industry

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 Soheil Shahidi said: "The main problems of bank cards, despite the lack of information and low security, is the infrastructure that have been created.
"The discussion of subsidies and the lack of knowledge of citizens on how to use credit card, led to a huge amount of problems and various scams occurred."
Shahidi on the second password said: The ease of receiving the second password through the ATM of the card issuing bank, from past years to the present, has caused many problems in the authentication process, and fraudsters can easily use them with card theft. The SHAHKAR system and many systems have been operating for several years, and each institution that has access to these tools tries to take control of the tool under the pretext of security.
He emphasized the importance of authentic national ID cards, saying that there are so many national smart cards available to the public, half of which can be offset by full fingerprint authentication.
Shahidi added: SHAHKAR system is a masterpiece of the system and has been able to improve the level of authentication in Asan Pardakht application. 
Shahidi continued: In some countries, including Turkey, asking for a password by the card acceptor is a crime and the parliament and the legislature should apply the necessary rules. Where does in the world people buy cars or houses by credit cards that Iranians have to buy.
Board Chairman of Asan Pardakht Added: A disposable (single-use) password if not designed correctly can be a tool to increase scams; because of the complexity of activating it for illiterate individuals, fraudsters can easily use them and empty the accounts of people.
He said that the infrastructure of using the smart card in the banking industry and electronic payment companies should be provided by the Ministry of the Interior and the Civil Registration Office. Referring to the directive of the Governor of the Central Bank to electronic payment companies, no transactions with foreign IPs must be performed, and IPGs only allow the IP address of Iranian users to be traded. I believe we have to have a service to get a Persian IPs; the current status is incorrect. Transferring money inside Iran's banks is instantaneous, but the speed of transferring money abroad is low, the money laundering and fraud debate is to be scrutinized, and Shaparak must investigate fraud detection in card reader devices.
 


A banking expert said there are different ways to detect fraud in banking systems.

Financial Expert Highlights Ways to Detect Fraud in Banking Systems

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 A banking expert said there are different ways to detect fraud in banking systems. 
Addressing the audience in the 8th annual Conference on Electronic Banking and Payment Systems on Wednesday, Jalaleddin Nasiri said multiple methods are used to prevent financial misconduct in fraud detection systems.
In the convenient method of detecting banking fraud, he said several modules are embedded based on a simple set of rules and disclose them via repeated cheats.  
Nasiri said the weakness of this method is its failure to detect new fraud. 
He added the profile-based methods (accounts, banking cards, customers, branches and banks) are other patterns of fraud detection, which disclose frauds via extracting abnormal patterns and advanced data analysis based on the behavior of NTT accounts.
Nassiri said the failure to back the Concept Dirift, configure the level of sensitivity and its failure to detect complex frauds are the weaknesses of this method.
The effectiveness of new methods of fraud, lack of suspicion and the moderate complexity of the system are the strengths of this method, he added .
 


CEO of Shaparak Co Mohsen Ghaderi says banking fees should get fixed and placed back on the tracks.

‘Derailed banking fees must be put back on the tracks’

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CEO of Shaparak Co Mohsen Ghaderi says banking fees should get fixed and placed back on the tracks.

Delivering a speech on the sidelines of the 8th annual Conference on Electronic Banking and Payments on Wednesday, Ghaderi stressed that prior to utilizing the new technology in the country, we must promote cultural awareness for it.

“Every service calls for a fee”, Ghaderi noted adding that the rise of cash-related expenses in banks, will consequently jack up the interest rate.

On payment switches, the CEO of Shaparak Co said around 70 percent of fees from payment switches go to the banks and the rest is for the networks.

A payment switch is an independent entity that makes communication between different payment providers quick and easy.



A member of the Board of Directors of Post Bank believes that the Central Bank’s new planning should change the traditional system of fee charging in banking system of Iran.

The Need to Change the Traditional Fee System in Iran

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 Mohammad Hossein Mehrani, said: "In order to reach a new planning in this field, consideration of the fee in the years 2005-2007 should be reviewed. At that time, banks were carrying out the main load of Switches, but the important argument was that the culture should develop in a way to make people use electronic banking frequently, which was a successful experience.
He explained that at that time charging fees was established that banks were accountable for it. The Central Bank at that time did a successful job and achieved its goals, but today and after several years, the fee payment system must be transformed from its traditional state. The argument is, what should be done with what strategy.
Referring to past plans to improve the fee payment system, he said, "Today we have to come up with a new approach, which will be hard. An important component are Fintechs that play a more serious role in this area."
Mehrani added: Creativity should be supported to form models of the fee payment system. The Central Bank has to create a new trend and a new harmony to implement this strategy. There was a movement with Fintechs, and there were many motivations in this regard, but it seems that the Fintechs were not guided to the right direction and today there is a gap in their interaction with the monetary and banking system.
The member of the board of directors, emphasizing that a one-time shift in the fee charging would not be effective, said: "As the experience of previous years suggests, it cannot be expected that changes to be abrupt and resultant, but it is important to provide the basis for the changes, and with Fintechs presence, the result will be more successful and faster.
He explained: "The calculations that we have already made and can be operational is that the transaction fees under 500 thousand Rials must be paid by cardholders and above this amount must be paid by card acceptors (receivers). In the event of objection, there will be the possibility of attacking and inflating into ATMs and increasing demand for cash. For this matter, it is also possible to consider a fee for ATMs and the solution to the objection to this, is the design and use of fee for E-Wallets. 
 


The CEO of TOSAN Techno says, “Cash money is the last resort in the traditional banking.”

‘Cash money, last resort of traditional banking’

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 Mohammad Mazaheri said if Blockchain and cryptocurrency become more popular, they will surely take over hard money, presumably in the next decade.
Speaking on the sidelines of the 8th annual Conference on Electronic Banking and Payment Systems on Wednesday, Mazaheri said the focal point of the assembly is “Blockchian Revolution” and “digital development”, technologies that will shape the future.
He added that the international banks are moving towards new structure, which is divided in a few stages. In the first stage, digital banking merely provides information, then comes online banking, and then self-service banking, which both empower customers and give them more freedom to do their banking. While Iranian banks are lagging behind and are at online banking stage, some international financial institutes have reached the self-service phase. The next step will connect banks to customer, which is one of the main goals on this plan.
Addressing the challenges before Iran’s banking system, Mazaheri said, “Today, banks have only 10 percent walk-in-customers, but we need to figure out ways to bring that number further down.” The main plan is to serve customers best way so they can do their banking without having to drop by banks and financial institutes.
Another speaker at the conferece, Reza Sahebzamain, chairman of the Board of Directors of Smart System Aban, said that with emergence of new technology, we are trying to find ways to “optimize services” through virtual banking.
 


Managing director of SADAD Electronic Payment Company said: between 20% and 70% of the transaction fees is received by the government, it is natural that the regulator does not want to remove these transactions when benefits from them.

20 to 70 Percent of the Transaction Fees Received by the Government

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 Mohammad Mehdi Sadegh, said: "Between 20% to 70% of the transaction fees are paid to the government." 
Sadegh added: "Interested parties now receive fees in a variety of ways!" Therefore, the representatives of the guilds, banks and public institutions, etc., should also be present at the time of making a decision on fees.
He stated: Two years ago, the Bank Melli issued a credit card similar to other bank cards, and we were looking for contracts with card receivers, but given the wide range of payments we could not succeed.
He said that focusing solely on payment fees in the PSP is not correct and there are also charges in banks that are distributed in an unfair and non-secure manner, which we should decide for them. Another important challenge in this area is the fact that fixed fees are common.
 


According to statistics, it is possible to eliminate scams resulting from copying ATM cards and eliminating the challenge in the banking system, Supervising Deputy of Shaprak Company said on Wednesday.

The End of ATM Cards’ Scams to Come

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 According to statistics, it is possible to eliminate scams resulting from copying ATM cards and eliminating the challenge in the banking system, Supervising Deputy of Shaprak Company said on Wednesday.
Addressing the audience in the 8th annual Conference on Electronic Banking and Payment Systems on Wednesday, Mahdi Tobaei said Shaparak examines the imbalance and problems in banking transactions.
Electronic Card Payment Network System, SHAPARAK (a platform for payment service providers and their POS terminals) is a highly integrated system and by advocating central management and monitoring functionality will promote efficiency, effectiveness and security of card payment network.
He said phishing scams and copying magnetic strip of ATM card are considered as major challenges and frauds that exist in the country’s payment network.  
“EMV cards, equipped with a chip, are an important and practical alternative to magnet cards,” he said, adding that these cards also increase the security of the internet payment network and algorithms to deal with phishing.
He said that implementation of new technologies depends on governance decisions which are based on decision-making and evaluating the cost and benefit. 
 


The Slovenian S&T Project Manager said payment companies should prevent fraud by improving their software.

Payment Companies Increase Security by Upgrading Software

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 According to the Public Relations Department of the Monetary and Banking Research Institution, Matthias Strøver Schenike, Slovenian S&T project manager at the 8th E-banking and Payment Systems Conference, on customer authentication systems said: banks should provide all transaction security.
He added that payment service providers should upgrade their software to prevent fraud. Of course, data thieves are always two steps ahead. In Europe, due to the annual inspections of banks and audit reports, banks are somehow protected, and nothing remains hidden.
Schenike said: To have a strong customer authentication, you need to use several security features, for example, you can use the security code and disposable identification code. One of the features of the authentication code can be the use of sequential numbers to prevent it from being spoofed.
Schenike noted that establishing a dynamic relationship between companies and the user to transfer and track money is important. Integration of information and displaying it should be done between the two sides.
He also said the best thing is to do digital signing so that payments are authenticated for both sides. Service providers are responsible for securing transactions.
 


The Vice Chairman of Network at Informatics Services Corp. said: Traditional banking is over in the world and we have to move towards open banking.

The Traditional Banking Era is Over

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 According to the Public Relations Department of the Monetary and Banking Research Institution, Mehran Moharamian, in the “Open Banking Review Panel” said: Nowadays, open banking is fad while GARTNER says the banks moving towards platforms and are supposed to transform completely.”
Three banking challenges
According to GARTNER the three challenges of open banking are culture, security and money-making.
Conflicts over business models
Moharamian said that the current situation shows that we are in the middle of the conflict over business models, and Fintechs are active because the ecosystem is ready and if we do not build new ecosystems, we get seriously hurt.
"For this reason, the new ecosystems of banks will be transformational" he added. The expert in banking, argued that existence of startups are vital, and we should support them from the bureaucratic maze.
Extending the ecosystem
He added: Gartner's recommendation in the latest research shows that the ecosystem should be expanded, silos destroyed, culture promoted and production considered as value creation.
Supervisory role of the Central Bank
We should pay attention to regulators' concerns and take supervisory roles seriously, and we should not expect the Central Bank to ignore unnecessary open banking applications. PSD2, to a large extent, is widely accepted.
Digital economy
Vice chairman of market development and communication at TOSAN Company said: “Digital economy plays an important role in banking.”
Omid Torabi said, "We need to give space to service providers and large corporations with open banking."
Value creation process
Also, Nima Namdari, Vice Chairman of Planning said: "The Concept of Open Banking has changed for businesses in Iran and the world and has its effects on value creation and profitability." 
He added: Open Banking has began its operation since the beginning of the financial crisis in America in 2007, and in those years the most important losers were banks so they decided to turn into new services that were costly.The Vice Chairman of Planning explained that open banking was created with certain benefits and sources of income. 
Banking expert Hassan Soleimani said: "Open Banking is a necessity, and banks must stop giving services in the framework of traditional banking, and they must try to prepare the infrastructure for updating and upgrading themselves.
 


In an aim to detect the suspicious banking transactions, the customers and their banking performance must be identified, the head of the Iran Central Bank's Anti-Money Laundering Inspection group said in Tehran on Wednesday.

Identifying Customers Vital in Detecting Suspicious Banking Transactions

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 In an aim to detect the suspicious banking transactions, the customers and their banking performance must be identified, the head of the Iran Central Bank's Anti-Money Laundering Inspection group said in Tehran on Wednesday.
 Addressing the audience in the 8th annual Conference on Electronic Banking and Payment Systems on Wednesday, Mohammad-Hossein Dehqan said: “We must say that everyone is responsible, but the type of responsibility is different,”
"All subdivisions are responsible to report the Central Bank if they have seen any suspicious cases in money-laundering," he added. 
Pointing to the IT software and its relationship with the identification of suspicious transactions, he added that in an aim to accurately understand this issue we have to go back one step further and identify our customers more closely.
He said that all major risks should be investigated beforehand, arguing that the risks of money laundering in the country should also be investigated. 
“When we address customer risks, everything takes priority i.e. assuring customer service quality,” Dehqan added. 
 


Vice President of Munich School of Economics said the future banks will become platforms, and the Blockchain can be used as a conveyor belt to make this platform work.

Future Banks will Become Platforms

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 According to the Public Relations Department of the Monetary and Banking Research Institution, Carsten Barch at the 8th E-Banking and Payment Systems Conference said: Today, the question is how the Blockchain can create revolution in future banking.
He said: The next step in banking will not be a revolution; it will be a transformation. All the technologies in banking go far beyond providing services, and banks can become a platform.
Barch said that after digitalization of banks, Fintechs entered and used small pieces of value chain, using artificial intelligence and creating a transformation that caused the bank chain to disintegrate.
The Munich School of Economics vice president said the future bank is a highly advanced technologically and based on Blockchain platform they will not require a lender and a borrower together. 
He pointed out that in the future, banks no longer need permission, and each Fintech Partner of them will focus on a specific field. Customers in the future will face a bank that is a platform where its services will be provided by its Fintech partners. Large companies are investing in the Blockchain.
Carsten Barch added: "With Blockchain, we can solve a lot of tracking and security problems in the banking system, while cutting costs." The Blockchain can act like a conveyor belt that makes the banking platform more efficient. Creating an official Blockchain can optimize all finance activities, and customers will feel secure with your presence, and this technology will never be tampered with.
 


An e-banking specialist said on Wednesday that Blockchain technology is one of the tools that save the future of our lives.

E-banking specialist: Blockchain technology a tool to save future lives

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An e-banking specialist said on Wednesday that Blockchain technology is one of the tools that save the future of our lives.

Valiollah Fatemi Ardakani made the remarks on the sideline of conference opened in Tehran on Tuesday, adding that the amount of information and platforms that are offered by Blockchain technology would contain monopolies.  
 “In the future ecosystem of our lives, digitization is the main mechanism in which all would have the ability to create information and employ it at the same time.” he added. 
This new technology will provide a creative climate for innovators and decision-makers which have a profound effect the lives across the world, Fatemi Ardakani noted. 
This technology could be utilized in the field of e-commerce, payment tools and intelligent contracts and information recording, he added.
Fatemi Ardakani reiterated that this technology would also change the people lifestyle and has a great impact on banking system.  
 Fatemi Ardakani concluded as saying that in this framework, the rights of each member are preserved, justice would be established  and the role of people would precisely determined.
The 8th Annual Conference on E-banking and Payment Systems started in Tehran on Tuesday attended by several high-ranking Iranian officials.
Among the topics of this conference are Blockchain technology and Distributed Ledgers, Cryptocurrencies, alternative payment systems, financial technologies, payment and open banking, scam, money laundering, fraud and methods of coping with it, and digital evolution.
 


Brett King, Australian futurist, author, and co-founder and CEO of Moven, a New York-based mobile banking startup, calls Blockchain industry the main column of future economies.

Blockchain is the Main Pillar of the Future Economies, Says Aussie Futurist

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 Brett King, Australian futurist, author, and co-founder and CEO of Moven, a New York-based mobile banking startup, calls Blockchain industry the main column of future economies.
Addressing the audience in the 8th annual Conference on Electronic Banking and Payment Systems on Wednesday, King said the need for Blockchian, and data banks grows more, with the upcoming 18 billion robots across the world in the next few years.
He was of the opinion that the old companies won’t succeed in the digital world, adding that successful factories in the future will take advantage of “smart technologies.”
King said decentralization in the financial industry has enhanced people’s access to financial tools. However, the Aussie speaker noted, the issue with Blockchina is the “volume of transactions” distributed on different computers that ultimately reduces the transaction speed.
The Aussie entrepreneur Blockchain can help “secure personal information”, and thus “the future relies on the industry.”
 


The Head of the Department of Electronic Banking at MBRI said: Blockchain technology is not the key to the problem of all businesses and should not expect this technology to solve all the problems of the banking industry and businesses.

Blockchain Technology is not Solving All Businesses Challenges

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 Amirshekari stated: "The statistics show that inside organizations are not safe and cannot be trusted, and one of the most important threats are insider threats."
Avoid financial and security hazards
The director of the Electronic Banking Department said: "The facts indicate that there are such damages in the country as well, and we need to address them to protect information in order to prevent threats and win trust of the people." Amirshekhari added: Blockchain technology can solve these problems because it has shaped a lot of security measures on its platform.
International transmission capability
"Blockchain creates attractive opportunities such as international transmission" he said. Amirshekari said: Sustainability is another key feature of the Blockchain along with its trusted structures.
Expand governments support from Blockchain
Amirshekari added: Acceptability and predictability are other benefits of Blockchain, and day-by-day support of governments from Blockchain is taking place.
He added: Distribution and intelligence are among other special benefits of Blockchain. Director of the Department of Electronic Banking said: "For years, one of the most important problems has been the re-use of money and re-registration of assests, but in Blockchain there is no need to register assets twice.
Financial services industries welcome Blockchain
One of the industries that have been using the Blockchain technology is the financial services industry, which has implemented more than 50 percent of this technology, which is the source of the amazing services.
Converting physical and intellectual properties
Amirshekari said: "The conversion of physical and intellectual assets must be possible through a triple process that is decentralized and non-stationary so that physical assets transforms into information and can interact directly with a central interface."
Amirshekari noted that Blockchain has made a revolution in the technology world. He added: "The new generation of online gamers has a better understanding than people in government agencies about programming and features of the distributed ledger, and it should be expected this technology has higher future penetration." 
"Blockchain features are that high clarity and detailed aspects that created this revolutionary technology which made the changes in content and forgery impossible." 
Referring to the features of this technology, Amirshekari continued: the lack of centralization and distribution are key features of Blockchain technology; there is also a consensus mechanism in the Blockchain to determine if transactions are allowed or unacceptable.
"Transactions in the Blockchain network are considered unique and assets are recorded only once, and counterfeiting is not possible," he added. "Blockchain network is technically a wallet, and the claim that anonymity is considered is not right, and governments can create a KYC identity indicator." 
Blockchain is not Bitcoin
"Any new technology has good and bad features; we must know that Blockchain is not bitcoin, and Blockchain is an important infrastructure. 
"According to global reports, 92 percent of the 26,000 Blockchain-based projects have failed."
Blockchain is not the key to all businesses problems
Blockchain technology is not the key to the problem of all businesses, and the technology should not be expected to solve all the problems of the banking industry and businesses.
 


The Minister of Information and Communications Technology said that so far, four to five Cryptocurrency test models have been implemented and decision making in this area for their activities with the central bank.

Implementation of 5 Cryptocurrency Test Models / Central Bank Positive View on Blockchain

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 According to the Public Relations Department of the Monetary and Banking Research Intitution, Mohammad-Javad Azari-Jahromi, on the sidelines of the 8th Annual Conference on Electronic Banking and Payment Systems, told reporters about disconnecting SIM cards sending interrupting SMS, and he said: "The new regulatory system, which was launched to identify intrusive SMS, since installation, detected and interrupted 8500 active SIM cards."
He added: "The average of the following days has reached about 500 SIM cards and is decreasing day by day, and a total of 9,000 SIM cards have been discontinued so far."
According to the Minister for Information and Communications, the monitoring shows that the transmission of these intruder SMSs has fallen by about 90 percent, while complaints have also been drastically reduced, although they are still not complete, but the Ministry of Communications is steadily trying to make them zero.
Azari-Jahromi also responded to the question of the Central Bank's approach to Blockchain and its resistance to adopt the Blockchain: "Blackchain essence is decentralized and distributed, however the Central Bank is the centralized institution for regulating banking, so Blockchain is structurally in conflict with the Central Bank. And we cannot expect the central bank to promote it, but the central bank should find its way to its new engagement with this structure, and what it refers to as the Central Bank's resistance to Blockchain may not be the correct word." 
He continued: When the Central Bank holds a Blockchain conference, it puts it as a challenge, means its approach is good and positive.
Referring to the design of a number of Iranian Cryptocurrencies, the Minister of Information and Communications said: "Regarding the use of these instruments, the Central Bank should comment, but technologically, there are currently four or five prototype models implemented and decision making in this area is the responsibility of the Central Bank, which now publishes its initial approach on its website and gives an overview of the industry's activists."
Azari-Jahromi said about the possibility of removing the telegram filter: "Telegram should be decided on by the judiciary system, and the last comment we heard was that the prosecutor's office announced that the causes of the filtering had not yet been resolved.
 


Deputy for Innovative Technologies at the Central Bank of Iran Nasser Hakimi says the future will tell whether “Blockchain Revolution” was an appropriate terminology for the new technology.

What to do with Cryptocurrencies

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 Deputy for Innovative Technologies at the Central Bank of Iran Nasser Hakimi says the future will tell whether “Blockchain Revolution” was an appropriate terminology for the new technology.
Addressing the audience on the sidelines of the 8th annual Conference on and Payment Systems, Hakimi regretted that the government’s view on cryptocurrency may not be all positive, “making it tougher for cryptocurrencies approval.”
The Central Bank of Iran’s policy on Blockchain and cryptocurrencies is not technology oriented and must be regulated, the deputy of the bank explained.    
A challenge for a regulatory agency is to “avoid taking wrong decisions”, he stressed. 
Some say the Central Bank of Iran has recognized Bitcoin, Hamiki noted, but “we are waiting to hear from people on the issue”. 
Another panelist, Farshad Fatemi, an expert in economy, for his part, said that in the establishment of Iran’s banking industry, the Central Bank has ignored to draft some monetary policies due to lack of expertise.
The emerging technology can bring about many challenges along with it in the future for the country as it is the case with Blockchian technology.
The CEO of Informatics Services Corporation (ISC) of Iran Seyyed Abu-Taleb Najafi, another speaker in of the conference, called the new technology a new phenomenon.  
He regretted that Iran has not succeeded much in Blockchain among other states in the international arena and may face numerous challenges in the future.
By 2014, around 32 countries implemented the preliminary policy on cryptocurrencies and 130 states had already looked into Blockchiain technology. Thus, Iran has to get quite acquainted with the emerging technology nationally and devise policies for it, Najafi stated.
Alireza Daliri, a Deputy for Management Development and Resources at the Vice Presidency for Science and Technology, said the government should accept the technology under any circumstances as the world is rapidly changing into a global village. “The technology will offer better transparency of information.”
Amir Hamouni, Managing Director of Iran Fara Bourse Co, also expressed his opinion in which he said time will tell what services Blockchain and cryptocurrencies will offer to the investment market and banking system. The most vital issue in the new technology is to build client confidence.”.
 


The Vice Governor of IT Technologies of the Central Bank believes the different goals of the banks is the reason for failing to create a strategic alliance between banks.

The Goals of the Banks are Conflicting / Hakimi Criticizes the Number of POS Providers

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 According to the Public Relations Department of the Monetary and Banking Research Institution, Naser Hakimi, at the Strategic Banking Alliance's Roundtable, stating that we do not have a professional alliance and we want banks first can make the same decision for common interests.
Pointing out to the removal of transaction fees in the 2000's, he said, "In the 2000s, banks eliminated all the fees and provided free facilities, and after that, it's very difficult to charge people for something that was free.
Hakimi said we want the things to happen that we like, for example, we were proud of the fact that within the country there are 6.5 million POS machines and now there is a long line for PSP companies who want to provide POS machines.
"Each of these devices costs more than ten million Rials, and we spent 65,000 billion Rials cost of work, which did not worth more than 20,000 billion Rials and has been resolved in other countries," he said.
"One reason is that the goals of our banks are completely different," saying that the Central Bank always wants to call banks to take a joint decision and develop this issue. State-owned, private, development, and government-owned banks have no common goals, which makes them competitive.
According to Hakimi, when the goals of the banks differ, the decisions are different, the private bank seeks to make a profit for their shareholders, but in contrast, among the governments, there is a rival that has nothing to do with their profit and loss.
He added that the sovereignty of the banks' shareholding has set other criteria that prevent banks from linking in to establish a strategic alliance, as the principle disappears and discusses minor issues together.
 


Chief Executive Officer (CEO) of Iran Maskan Bank Abolqasem Rahimi Anaraki stressed the significance of forging a strategic unity among Iranian banks.

Calls for Forging Strategic Unity Among Iranian Banks

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 Chief Executive Officer (CEO) of Iran Maskan Bank Abolqasem Rahimi Anaraki stressed the significance of forging a strategic unity among Iranian banks.
Addressing the banks strategic alliance roundtable on the sidelines of the 8th Annual Conference on E-banking and Payment Systems currently underway in Tehran, Rahimi Anaraki said forging a strategic unity is not just a choice but a necessity for all banks. 
He also called for creating the culture of boosting collaboration between the Iranian banks aim at implementing this strategy. 
Rahimi Anaraki said the strategic unity would play a pivotal role in settling the banking problems.
 


The director of the Monetary and Banking Research Institution said that a strategic alliance should be established between the Private Banks and the Banks’ Coordination Council, and that an association should be formed that has high power.

Divandari Suggestion to the Banks: Create ‌Bank Association

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According to the Public Relations Department of the Monetary and Banking Research Institution, Ali Divandari, said: "Once it is asked why strategic alliance is important and if we need this alliance? The answer is yes, today our banking system needs strategic alliance more than ever."

Speaking at a press conference, he said: "We need more than ever to prevent the cost and not put pressure on depositors."

"We need these alliances, even if we want to keep the profit margin at a minimum," he said: "We have to avoid the destructive competitions that are detrimental to all of us, because these competitions will not have any winners, and ultimately it is only harmful."

Pointing out that our banks have not been able to cooperate well with each other, the director of the MBRI said: "What has been done in the insurance industry is not easy to do in the banking industry, these are the serious problems that we have in the banking system."

Why banks cannot work well together? He said: maybe cultural problems and laws and ... But it's not the case that because we are in Iran, we have this problem because there is a union in the insurance industry and risks are divided between insurance companies. The solution to this problem is the emergence of a new thinking in the banking industry to reduce the balance sheet financial pressures.

The director of the MBRI about why banks will want to be fully autocrat? He stressed that banks are unwilling to unite, and even in some banks there are examples that do not work with their own companies.

An inspiration for the creation of value on your own within the firm is not possible, added: The period of competition at any price is passed, and we do not have enough money to spend on these competitions.

He suggested that the first strategic alliance be created between the private banks' and the Bank's Coordination Council, and an association is formed that has high power. If this institution is formed with power, the Central Bank will also consult it, but it is now very fragmented and not effective.

"The Central Bank should continue to intervene, and a series of strategic alliances with Central Bank formed, like many of the IT and payments services that have been done so far," he continued.

He stated that strategic alliances should be taken seriously, and one board member should be responsible for pursuing this in each bank. He added: "When the trustee has a certain job, his task is slowly forming."

The director of the MBRI also emphasized that the measures taken in this area should be broadcasted. In other countries, the Bank Association has a lot of power that can be helpful and a step forward. Therefore, it is recommended that a focal point be formed in the form of an association between banks.



Chief Executive Officer of Ayandeh Bank says there is no chapter in the commercial law on strategic alliance in banking system.

Advantages of Strategic Alliance in Banking System

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 Chief Executive Officer of Ayandeh Bank says there is no chapter in the commercial law on strategic alliance in banking system. 
Jalal Rasoulof named “cost reduction”, “organizational agility”, and “risk distribution”, among the benefits of strategic partnership in banking.
Speaking on the sidelines of the 8th Annual Conference on Electronic Banking and Payment Systems on Tuesday, Rasoulof noted strategic alliance in banking system goes as far as the 1970s.
He stated that the understanding and agreement reached between individuals and organizations to complete a specific project is a prelude to strategic alliance.
"The purpose of the agreement is to assess each party's capabilities and merits in a healthy competitive atmosphere, although the nature of the alliance is quite complicated and complex.”
He went on to say that strategic alliance in banking system promotes exchange of knowledge and experience among partners of the coalition.
Strategic alliance is a voluntary approach by banks and offers various types such as investment in a small project or outsourcing projects which are unanimously decided by the partners, he concluded. 
 


The vice president of business development at SADAD Electronic Payment Company said: "In the past few years, the payment industry has reached a special status with innovation."

The Status of the Payment Industry has been Upgraded

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 According to the Public Relations Department of the Monetary and Banking Research Institution, Amir Hossein Davoodian said: in 2019 we will face four models. The first model is the volume model that operates in the payment industry and faces a large volume of transfers.
"The other model is the experience model that attempts to change the customer experience in the purchasing process," he said. The third model: The feature-rich model is the latest model to be expected to be implemented next year: offering many services to our customers.
"Lock-in system model is the latest model. In this model, security and access to information is one of its most important goals. One of the reasons why payment system is ahead of banking system is that you can use a variety of services with a mobile app," Davoodian said.
He also announced that paying attention to the customer's buying behavior in the payment industry would create valuable experiences and form an appropriate ethos of behavior.
The professor of Electrical Engineering at Amir Kabir University, on cognitive calculations in the banking system, said: The principle in the banking world is supplying capital.
Mohammad Baqer Menhaj on customer facilities personalization said: learning a machine can personalize banking services for customers. "In the current world, information and trends are supposed to be transfered the inference to the computer at a high speed to achieve exponential and qualitative results with unlimited computing." 
Big Data Analysis
"In this context, several sciences are interconnected, and with the Big Data analysis, we see an enormous amount of diverse information in all fields that should be organized in a structured way."
Professor of Electrical Power Plant at Amir Kabir University added: "We are currently examining the new techniques of deep networks and the need for following standards are highly essential."
Behavioral Modeling
He added: "Banks can use the behavioral modeling to make the provision of facilities tailored to customers' needs, along with timely notification of financial risks to customers."
 


Chief Executive Officer (CEO) of Iran Mellat Bank Mohammad Bigdeli said his bank is seeking to ink three agreements with other banks in the field of strategic alliance.

Mellat Bank Seeking to Forge Strategic Alliance with Three Banks

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 Chief Executive Officer (CEO) of Iran Mellat Bank Mohammad Bigdeli said his bank is seeking to ink three agreements with other banks in the field of strategic alliance. 
Addressing the banks strategic alliance roundtable on the sidelines of the 8th Annual Conference on E-banking and Payment Systems currently underway in Tehran, Bigdeli said the strategic alliance of banks has not formed until today. 
 He also stressed the significance of forming a banking alliance in the country.
Commenting on Mellat Bank cordial relations with Mehr-e Eqtesad Bank, he added that forging mutual collaboration will pave way for rendering better services to customers.  
He added that Mellat Bank is seeking to sign an agreement with Ayandeh Bank in near future.
 


The deputy chief of security of the Informatics Services Corporation added: "The national cryptocurrency with the backing of the Rial can ultimately lead to the creation of an offline wallet to eliminate the problems of printing the banknote.

Create an Offline Wallet of the National Cryptocurrency with the Rials Backing

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 According to the Public Relations Department of the Monetary and Banking Research Institution, Ali Mirzaei Oskoei, Managing Director of CITEX Company, at the panel discussion on “Why the Revolution? Why Blockchain?” said: "In 2030, supercomputers enter the life cycle of humans with a high processing capacity, when Satoshi Nakamato introduced Blockchain, did not give absolute answers to questions and there are many uncertainties about it."
Blockchain technology is an introduction to the distribution of power, and it's not just in the financial and banking sector, and in other areas it can be an infrastructure strategy. The CEO of CITEX Co. emphasized: "Blockchain is an infrastructure, and the new ideas based on this technology will make Blockchain a revolution."
Mirzaei remarked: "All revolutions are against those who do not intend to change, as Dr. Divandari emphasized, Blockchain is a very good opportunity." He emphasized: “The national Cryptocurrency is not about to take Bitcoin's place or circumvent sanctions and solve all the problems of the country, but correct implementation will be for the interest of the country.”
Noushafarin Momen Vaghefi, deputy cheif of security of Informatics Services Corp., also on the panel discussion of “Why Revolution? Why Blockchain?” said: Revolution can have good or bad outcomes, and can eliminate good achievements, and the Blockchain Revolution is also one of those revolutions that can hit a blow or resolve challenges.
"Blockchsin technology is a revolution of objects, which is created from the combination of the Internet of Things and artificial intelligence, and leads to a great transformation in the intelligence concept," he added. "If we can truly deal with Blockchain, we can use the benefits of it, and hopefully use it," said Deputy Chief of Security of Informatics Services Corp.
He emphasized: Harvard believes that Blockchain technology will have good gains in the next 10 years; central banks, technology giants and emerging companies are looking to take advantage of this technology, indicating that there is a keen interest from businesses and regulators for this technology.
Acknowledging that authentication is one of the major achievements of Blockchain technology, Momen Vaghefi stated: "Creation of prototype is for the checking the Cryptocurrencies, and many central banks, including the Central Bank of Iran, have taken steps to investigate its applications."
Referring to the national Cryptocurrency, he added: "The national Cryptocurrency with the backing of the Rial can ultimately lead to the creation of an offline wallet to counter the problems restrictions on printing the banknote.
Unveiling of the Collective Financing System on Blockchain Platform on February 12
Behrang Sadeghi, director of technology development in Iran Fara Bourse Company, about creating wealth, said: To generate wealth, a network must work in a coordinated manner; I believe that wealth is generated by the displacement of goods, and data.
Referring to the guidelines and the conditions for adopting technologies, he said: Technology should be accepted by the Judicial principles, while transactions can be tracked by sovereignty; on the other hand, this technology can ensure that there is no phishing in the network, especially in financial networks, given its high importance, it can be successful in generating wealth, and Blockchain technology can secceed in the country.
The technology development director of Iran Fara Bourse Company, said Blockchain technology has many uses, said Blockacin technology did not come to eliminate everything or make fundamental changes to the infrastructure, but with the emergence of intelligent contracts and proof for contracts, we see increased transparency, and Blockchain can have many applications in the financial markets.
Sadeghi stressed: Blockchain-based crowd funding will be unveiled on the 40th anniversary of the Islamic Revolution, on February 12th, and, hopefully, with the agreement of the three ministers, crowd funding will be exempted from registration in the stock exchange to facilitate the financing process. . He emphasized: "I believe we are ahead of many countries in using Blockchain technology, and Iran is in a good position."
 


Paolo Sironi, an expert in digital innovation, said: Fintechs can help banks to merge together.

Banks are Merged with the help of Fintechs

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 According to the Public Relations Department of the Monetary and Banking Research Institution, Paolo Sironi, a digital innovator attending the 8th Electronic Banking and Payment Systems Conference, said: "One of the key issues in Fintechs is that customer orientation is the principle and the ultimate product is the people not banks are not and people are told how to work better with their money."
He said the United States is pioneering in the Fintech debate. “In the next 20 years digital access to banks will be completely different. Digital is not always psychologically good for banking services. By 2025, the Citi Bank of America predicted that 50 percent of banking work would disappear because of technology. Banks are constantly rebuilding due to Fintech innovations and moderating their forces.”
An expert on Fintechs said: "In the Western world, up to 5 years, the profit margin of payments, wealth and assets management will be almost zero." In Europe, margins have declined substantially, and regulators have had tough competition, which has lowered the banks' revenues towards customer service.
"Selling products can be money-making." said Sironi. Customers need to consult and companies must service them, which is the biggest revolution in Fintechs, which can create a profitable relationship between companies and customers.
The real competition between big ones is Ali Baba, Amazon and etc. Fintechs cannot compete with the banks. Fintechs have been innovating since 10 years ago, and digitals are poor innovation compared to Fintech innovations.
By the next five years, all banks will work with FinTechs, and will make money transfers cheaply almost without fees. Banking is not a consumption but a customer relationship, so it's important to establish this relationship between the bank and the customer. At the end, Sironi said: With Fintechs technology, banks can be merged and services are divided. Digital payments do not bring a lot of money to banks.
 


The Minister of Information and Communications Technology (ICT) Mohammad Javad Azari Jahromi says some 9,000 subscriber identification module (SIM), widely known as a SIM card, have been identified and disconnected.

Iran’s Central Bank Has a Positive View on Blockchain, says ICT Minister

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 The Minister of Information and Communications Technology (ICT) Mohammad Javad Azari Jahromi says some 9,000 subscriber identification module (SIM), widely known as a SIM card, have been identified and disconnected.
All the SIM cards had delivered unsolicited commercial text messages and have been a source of nuisance, the young minister said in the 8th Annual Conference of on E-Banking and Payment Systems.
Addressing the audience in the conference on Tuesday, Azari Jahromi noted ever since Communications Regulatory Authority (CRA) began a crackdown on the SIM cards, the compliant over the unsolicited commercial texts have declined by 90 percent.
The minister went on to say that since Blockchain is the banks’ rival, the Central Bank is not expected to encourage the new technology.
However, “when the Central Bank launches a Blockchain conference that means it has a positive outlook on the new technology.” 
So far, four or five cryptocurrency experimental models have been designed and offered, but the Central Bank will make the decision on the final cryptocurrency, Minister Azari Jahromi concluded. 
 


Deputy Governor of IT Technologies of the Central Bank said that the deposited money in the electronic wallets is the red line of the Central Bank, because it counts as depository.

Deposited Money in Electronic Wallets are the Red Lines

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 According to the Public Relations Department of the Monetary and Banking Research Institution, Naser Hakimi at the “Hot Seat” meeting, on the subject of the challenge of industry activists at the 8th Electronic Banking and Payment Systems Conference, initially talked about the payment industry's business models and the banking fee systems, and added: This was a problem in the late 2000s, that any cost was not considered in the banks’ statements, and banks with sufficient financial resources were charging no fees for bank services.
He said: "It does not happen anywhere in the world that bank services are free of charge. This happened three years ago in Iran for banking services fee and was not successful, and so we have to replace it with another strategy."
"We cannot afford to pay for previous free services, and we have to plan charging fees for new services" said the vice governor of the Central Bank, emphasizing that we all know that there is a need for action to be taken.
Hakimi also said that some of the existing services are so good that we cannot change them, such as card to card transactions, but we can upgrade some of the services.
In another part, he said: "I do not think that serious action will take place in credit card cases until the problem of bank balance sheets is resolved."
On removing banknotes and coins in cash transactions of the people the vice governor of the Central Bank stated: By the beginning of the year 2010, banknotes and coins were removed from the transactions. When the behavior of the people has changed, a very important thing has happened that cannot be changed with any government policies. This is an independent variable and cannot be regulated.
Hakimi stated: the Central Bank has little capital, in the structure of the Central Bank's assets, the bank's debt in the form of holding the banknotes in the pockets of people should be considered. 
He pointed to the early exchange rate crisis of this year and the role of the payment industry, adding that the Central Bank managed the market using the payment tools; the bank needs infrastructure to exercise its sovereignty through it, since the exercise of sovereignty through the directives will not be operational.
He said: "For us, transactions under $20,000 are expensive for the bank, and it is not desirable. Therefore, to reduce costs, we need to remove some of the transactions from the bank and make them offline and accumulate these transactions and then send to the bank to reduce costs in this area. 
Hakimi said, "We have concerns that our banks are relentlessly giving access to data. There was an incorrect understanding of the fact that anyone can get a access from a bank and start a job, as it should be determined which banks are giving services to Fintechs and how the give authorization. The common platform is the challenge that is currently hot in the world.
He emphasized that a specific policy should be drafted to determine the responsibilities of the bank. "We look at the rules of the world, along with all those who put this policy on their agenda. We are negotiating to comply with all standards."
 


Abotaleb Najafi, Managing Director of Informatics Services Corporation (ISC) said Blockchain technology will be flourished by 2030.

ISC Chief: Blockchain Technology Will be Flourished by 2030

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 Abotaleb Najafi, Managing Director of Informatics Services Corporation (ISC) said Blockchain technology will be flourished by 2030.
Addressing the 8th Annual Conference on E-banking and Payment Systems currently underway in Tehran, Najafi said that the technology has created a revolution in the banking and financial arenas.
Managing Director of ISC said that this technology plays a pivotal role in future businesses. 
Najafi emphasized that the combination of three IT technologies, artificial intelligence and Blockchain technology has managed to bring autonomy to new technologies and have paved the way for smarter businesses. 
He added that Blockchain technology is an opportunity which should be implemented slowly and gradually. 
 


The vice governor of IT Technologies of the Central Bank emphasized that combating money laundering and the use of national Cryptocurrencies are important for the Central Bank.

The Central Bank Emphasis on the Red Lines of Cryptocurrencies

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 According to the Public Relations Department of the Monetary and Banking Research Institution, Naser Hakimi, at the panel of “Opportunities and Challenges for Startups”, said: "You are dealing with economic agents when regulating them.  If you have bad rules that restrict businesses, no one starts working, and if you use your power to execute it, nobody will run it."
He stated that in regulating, "The interaction between the regulator and the consumer is created, and, summing up these two, we conclude that there are many laws in our country that will never be enforced."
Hakimi added, "Good regulation is that you enter into negotiations with stakeholders, as regulatory issues such as money laundering and the replacement of Iranian Rial with Cryptocurrencies are important for the Central Bank."
The Vice governor of the Central Bank's, arguing that the speed of economic activities is faster than the lawmaking in all parts of the world, added: "We have to define our lines and say that we have red lines that must be respected."
Hakimi also spoke about the openness of the IPAs, saying: "Everyone thinks this is a revolution, of course it is, but the red lines in this discussion are security that we should pay special attention to."
"If we do not have confidence in the system, everything goes bad," he said, emphasizing that the foundations for the financial system is trust, so we say that according to the rules of PSD2, the bank continues to issue authentication and authorization for transactions.
"Regulating this field is simple, but at the same time we have to think more to reach that simplicity, we should not pay too much attention to details," said Vice Governor of the Central Bank, emphasizing that the entry of the legislator into details means entering a swamp where it will be stuck.
Hakimi said that eliminating fees and removing transaction costs for the final consumer was a mistake that resolving them is very difficult. One of the problems is that economic agents do not pay fees, and at any time we want to charge fee, do not accept and somehow resist it.
He added: "Every business needs fresh money and it must earn revenue from the products it sells. On the other hand, it is difficult to charge fees for services that have been free so far at the current economic conditions, and it has social consequences."
According to the Vice Governor of IT Technologies of the Central Bank, the focus is now on the introduction of new services, such as direct withdrawals and Cryptocurrencies, and charge fees for them.

Referring to the difference between the credit transfer scheme and direct withdrawals, Hakimi said, credit transfer has been in operation since 2009, but for the first direct withdrawal, a license must be issued that requires the design of a licensing system, Afterwards, the beneficiary sends an application that asks you to send money, and then the third step occurs, which is the same process as the transfer of credit; in fact, the transfer of credit is 30% of the direct withdrawal process.
Pointing out that the solution to create fresh money is a new service, he argued: Fintechs are present in some other areas, such as the capital market, and their activities are free, but did not take place, however, they thrive in payment industry, because the regulator has created space for them, which, of course, has many critiques.
 


Mehdi Ebadi, the secretary of Iran’s Fintech Association, says financial technology or fintech, a new emerging technology, has become a subject of speech for many politicians and officials these days, according to the Public Relations Department of the Monetry and Banking Research Institution on Tuesday.

Fintech Train is Speeding Up: Secretary of Iran’s Fintech Association

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 Mehdi Ebadi, the secretary of Iran’s Fintech Association, says financial technology or fintech, a new emerging technology, has become a subject of speech for many politicians and officials these days, according to the Public Relations Department of the Monetary and Banking Research Institution on Tuesday.
Making the remark in the 8th Annual Conference on E-Banking and Payment Systems, Ebadi stressed government support for technology growth. “It is best that officials side with technology and watch the fast speed of fintech development.”
Ebadi noted that despite the “imposed sanctions” on Iran and “blocked bank accounts”, the fintech train in Iran is accelerating.
Among organizations paving the ground for financial businesses, Ebadi named the Central Bank, Shaparak Company and The Ministry of Information and Communications Technology.
He called on the Central Bank of Iran to continuously support Iran’s Fintech Association and startup companies.
He concluded Fintech can play a vital role in promoting the culture of bank fees, and thus they can join hands with the Central Bank to achieve the objective.
 


Secretary of 8th Annual Conference on E-banking and Payment Systems, Ali Divandari, said the realities of Blockchain technology should be accepted.

Divandari: Blockchain Technology Realities Should be Accepted

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 Secretary of 8th Annual Conference on E-banking and Payment Systems, Ali Divandari, said the realities of Blockchain technology should be accepted.
Divandari, who is also director of the Monetary and Banking Research Institution (MBRI), made the remarks in the Opportunities and Challenges for Innovative Business Roundtable on the sideline of conference currently underway in Tehran.
According to the Public Relations Department of the Monetary and Banking Research Institution, he stressed the significance of understanding the Blockchain technology’s actualities and its effects on big institutions.
He added that the conference is a great venue for Iran National Bank, different companies and related institutions to form an ecosystem for addressing the recent developments and ideas in Blockchain technology. 
 


Soheil Nikzad, a member of the board of directors of the Bockchain Association addressed the challenges ahead of banking industry with the emergence of Blockchian technology.

‘Blockchain Introduces Challenges to Banking Industry’

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 Soheil Nikzad, a member of the board of directors of the Bockchain Association addressed the challenges ahead of banking industry with the emergence of Blockchian technology. 
Making the remark in the 8th Annual Conference on E-Banking and Payment Systems, Nikzad said the issue is what to do with the technology and what impact it will have on the “structure of banks and governments.”
“The cryptocurrency in our country may be even harder than mining” Nikzad said, adding that “sanctions”, “censorship” and “cryptocurrency” have added to the problem at hand. 
To resolve the conflict, he noted, the technology requires the backing of the central bank and government.
He also called Blcokchain a technology that is not time bound.
Nikzad emphasized Iran should use the global cryptocurrency than having its own or allocate cryptocurrencies to the country’s various organizations. 
A Cryptography is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
 


Iran's Minister of Information and Communications Technology (ICT), Mohammad Javad Azari Jahromi, said the final decision on using Blockchain technology will be made in the next meeting of the government's economic commission.

ICT Minister: Gov’t's Economic Commission to Decide on Blockchain Technology Soon

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Iran's Minister of Information and Communications Technology (ICT), Mohammad Javad Azari Jahromi, said the final decision on using Blockchain technology will be made in the next meeting of the government's economic commission.
Addressing the 8th Annual Conference on E-banking and Payment Systems currently underway in Tehran, Azari Jahromi said the electronic banking and the payment system is considered as an interactive framework between the National Bank of Iran and ICT.
The Iranian minister said the authentication and identification of banking system’s customers is one of the challenges facing by the e-banking system in the country.
 Azari Jahromi underlined that the electronic banking and virtual banking should be developed at a higher speed.
The 8th Annual Conference on E-banking and Payment Systems started in Tehran attended by several high-ranking Iranian officials.
 


The Governor of the Central Bank, pointed out that direct withdrawal has already been operational in most banks, announced: “The Cryptocurrency policy will be finalized by the Central Bank.”

The Cryptocurrency Policy will be Finalized Soon

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Abdul Nasser Hemmati, in a video message to the 8th Annual Conference on Electronic Banking and Payment Systems, said: "Due to unpredictable travel to Syria with the Vice President, we could not attend the Banking Conference, but I decided to talk about the content that I was supposed to present at this year's conference, through the video message."

He said that these systems are in the first stage of regulatory oversight and pointing out that payment and settlement systems are important steps in the country's banking system that can help the Central Bank in two dimensions.

Hemmati continued: The currency crisis that took place in our country in the middle of the year and coincided with the sanctions, created problems for our country, which, thanks to God, we managed to reform the instruments of exchange market and relax the foreign exchange market.

The governor of the Central Bank said the second phase of the payment and settlement systems is assistance to the banking system’s startups and said: 200 million applications are being made to this section every day that can help to strengthen new businesses.

Hemmati announced the news of the week, and continued: "One of the important events that is now operating in most banks is direct withdrawal that we can use this tool as an important tool for startups. This system, of course, can remove the concern in this area on how to collect funds from the businesses."

The governor of the Central Bank announced the second most important news in electronic banking conference; “The Cryptocurrency policy was placed on the Central Bank's website yesterday, and it will be finalized after the final summing up of the comments at the conference.”

Hemmati announced the creation of the Blockchain platform as the fourth news, he said, "This action is also one of the other programs of Central Bank , and with the help and cooperation of technology companies, it can be a useful platform for e-banking and startups."

 


Ali Divandari, head of the Monetary and Banking Research Institute (MBRI), the research arm of the Central Bank of Iran, says the Annual Conference on E-Banking and Payment Systems, launched a decade ago, is a right platform among actors, policymakers and stakeholders in the electronic banking industry.

E-Banking and Payment System Conference most Vital Assembly in Iran’s e-Banking, says Secretary of Conference

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Ali Divandari, director of the Monetary and Banking Research Institute (MBRI), the research arm of the Central Bank of Iran, says the Annual Conference on E-Banking and Payment Systems, launched a decade ago, is a right platform among actors, policymakers and stakeholders in the electronic banking industry.
Making the remark in the 8th Annual Conference on E-Banking and Payment Systems on Tuesday, the secretary of the conference called the gathering the ;most important assembly in Irans e-banking;.
The conference focuses on ;Blockchain Revolution as the main topic of this year assembly, Didarvadin said.
The word revolution implies a big development in the financial system and Iran, too, enjoys the growth and penetration of this technology, he stressed.
Blockchian is a technology that uses distributed databases and cryptography to record transactions.
 


The 8th Annual Conference on E-banking and Payment Systems started in Tehran attended by several high-ranking Iranian officials.

8th Annual Conference on E-banking and Payment Systems opens in Tehran

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 According to the Public Relations Department of the Monetary and Banking Research Institution, the opening ceremony of the conference is slated to began with the speech by Dr. Ali Divandari, the director of the Monetary and Banking Research Institution, and the secretary of the Electronic Banking and Payment Systems Conference. Other speakers of the conference are Abdul-Nasser Hemmati, the Governor of the Central Bank and Mohammad-Javad Azari Jahromi, the Minister of Communications and Information Technology.
 
Among the topics of this conference are Blockchain technology and Distributed Ledgers, Cryptocurrencies, alternative payment systems, financial technologies, payment and open banking, scam, money laundering, fraud and methods of coping with it, and digital evolution.
 
The top article is also scheduled to be selected at the 8th Annual Conference on E-Banking and Payment Systems; applicants can refer to the 8th E-Banking and Payment System Conference website for more information.
 
The event would be wrapped up on Jan 30.
 
 
 


 The CEO of Bank Melli Iran and the chief of state banks coordination council, Mohammad Reza Hosseinzadeh, described the cooperation of banking system with start-up as vital.

Hosseinzadeh Calls for Close Cooperation of Banking System with Start-ups

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The CEO of Bank Melli Iran and the chief of state banks coordination council, Mohammad Reza Hosseinzadeh, described the cooperation of banking system with start-up as vital. 

Speaking on the sidelines of the 8th Annual Conference on E-banking and Payment Systems started in Tehran, Hosseinzadeh said development of e-banking, creation of the concept of virtual banking and the transition from traditional banking to modern banking all depend on the close cooperation of the banking system with start-ups.
Hosseinzadeh, also stressed the significance of using start-ups in the banking system.

 “The startups, which in the past were just a single name, have become an integral part of our lives today," he added.

Hosseinzadeh added that the startups, in addition to being highly regarded by the banking system, also play an important role in the development of banking activities.

He concluded as saying that, the National Bank of Iran has been able to provide significant services to its customers with the help of startups.
 


"In addition to domestic investors, three foreign investors are interested in cooperating and financing investments in Iranian Cryptocurrency startups." said Director General of Innovation and Investment Support Office at the Ministry of Communications and Information Technology.

Foreign Investors are Seeking to Cooperate with the Iranian Cryptocurrency Startups

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According to the Public Relations Department of Monetary and Banking Research Institution, and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Hamidreza Ahmadian, referring to the activities of new businesses in the field of Cryptocurrency, added: "We must accept the fact that, despite the legislation constraints, created, because of the demands of the society and the high profitability of the Crypto​​currency field, there are now many startups active in the field of Cryptocurrencies.

"In sanction conditions, Cryptocurrencies can help the country's economy, but we need to be more focused on the mechanism and institutionalization of cryptocurrencies," said the Director General of the Office of Innovation and Investment Support of the Ministry of Communications and Information Technology, saying that the regulation of cryptocurrencies is very important. If today we do not study Cryptocurrencies and take legislative measures a few years later, in addition to the backwardness, there will be problems and high costs for the country, but in the case of legislation, its benefits can be maximized and the excitement of the economic system can be avoided.

"The country currently has a dual policy for the cryptocurrencies, and the Central Bank, as a monetary and banking regulator, should work with the government to legislate and regulate the Cryptocurrency field," he said.

 Ahmadian, on the opinion of the sovereignty on the Cryptocurrency launches, noted that there are two main overviews in the field of ​​the Cryptocurrency startup; the first is that if Fintechs enter the Cryptocurrency field, they may be damaged, and then the sovereignty over legislate them. The second argument is the entry of sovereignty along with interacting with active businesses to create a framework and recognize emerging businesses in the area of ​​Cryptocurrencies in order to establish a healthy ecosystem.

Referring to the interest of foreign and domestic investors in investing in Iranian Cryptocurrency startups, he said: According to the latest figures, there are currently three foreign investors interested in cooperating and financing investments in Iranian Cryptocurrency startups. Their interest is in investing in mining foreign Cryptocurrencies; domestic investors are also interested in investing in Cryptocurrency Fintechs, but given that the rules are the main requirement for guaranteeing capital, they do not risk to invest until to declare policies in this domain.

Ahmadian emphasized: Iran is considered pristine country in the field of cryptocurrencies because, given the availability of legal infrastructure, there is a vital infrastructure for the operation of these startups, including the availability of cheap energy, which has led to investment in the field of extracting the cryptocurrencies profitable.

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held at the Milad Tower Conference Hall on 29 and 30 January 2019.



The lecture program and the panels of the 8th e-banking and payment systems conference was launched.

The Program of the 8th Electronic Banking Conference was Released

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According to the Public Relations Department of the Monetary and Banking Research Institution, the program of lectures, roundtables and product presentation ceremonies at the 8th Annual Conference on E-banking and Payment Systems, with the theme of Blockchain Revolution, and with the aim of discussing the latest developments in the electronic banking industry on 29th and 30th of January 2019, is being released. Among the topics of this conference are Blockchain technology and Distributed Ledgers, Cryptocurrencies, alternative payment systems, financial technologies, payment and open banking, scam, money laundering, fraud and methods of coping with it, and digital evolution.

The opening ceremony of the 8th Annual Conference on Electronic Banking and Payment Systems will begin at 8:30 am on January 29th with the speech by Dr. Ali Divandari, the director of the Monetary and Banking Research Institution, and the secretary of the Electronic Banking and Payment Systems Conference. Other speakers of the conference are Abdul-Nasser Hemmati, the Governor of the Central Bank and Mohammad-Javad Azari Jahromi, the Minister of Communications and Information Technology.

It should be noted that on the sidelines of this conference, a specialized exhibition will be held to introduce the achievements of the country's banking service providers in the field of electronic banking and payment systems. In addition to banks and financial and credit institutions, the companies operating in the field of banking services will present their products, services and capabilities.

The top article is also scheduled to be selected at the 8th Annual Conference on E-Banking and Payment Systems; applicants can refer to the 8th E-Banking and Payment System Conference website for more information.



The Director of Payment Systems department at the Central Bank announced the bank's plan to enforce authentication on mobile transactions in the near future.

Authentication on Mobile Transactions is Required in the Near Future

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According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Davood Mohammad-Beygi, regarding the bank's new plan for authenticating mobile transactions, added: "This plan may overshadow the ease of receiving services and makes it hard for some people, but it is necessary."

"Although the change in the payment industry due to the diversity of services and people's expectations is essential, the Central Bank cannot overlook security in this area," he continued.

Mohammad-Beygi, arguing that, in presence of the rigorous regulation of banking services, it is natural that the ease of receiving services declines, stated: “The Central Bank has long been investigating a mobile-transaction authentication plan by controlling the card number and SIM card number.”

The director of payment systems continued: "We know that implementing this work in the first phase can bring some problems for people whose SIM cards are not under their own names, but the implementation of this scheme reduces fraud and other problems in this area."

"In the last two months, we prepared the information of the people's bank cards, in order to ensure more security in the card transactions," he said, stating that people’s cards information is the most important infrastructure for the implementation of the plan.

Mohammad-Beygi, regarding the scheduling of the Central Bank to force the authentication of mobile transactions, added that the timing of the implementation of this plan will definitely be determined by the full readiness of the infrastructure.

The Central Bank official stated that authentication in mobile transactions requires the establishment of two important infrastructures: "The first step is to control the mobile number and the card number, and the second step is the dynamic code in virtual payments."

The director of the Central Bank's payment systems announced the requirement for a dynamic code in banks from February, saying: “We have announced to the banks that they are required to comply with the dynamic code from February, and this will become mandatory from April of this year”.

He stressed that the dynamic code is one of the things that, along with authentication, completes the security process, and the plan is being pursued vigorously in the Central Bank.

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of Blockchain Revolution will be held at the Milad Tower Conference Hall on 29th and 30th of January 2019.



The Secretary General of the Central Bank said the studies and analysis on Blockchain technology have been completed and defined regulations are being finalized.

Latest News from the National Cryptocurrency / Definition of Regulations for Blockchain

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According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Mohammad Talebi, to answer the question that at what stage the studies and analysis on Blockchain technology at the Central Bank are, pointed out: “The Blockchain technology has been well-studied at the Central Bank of Iran, and its defined regulations are being finalized. However, we have a discussion on Cryptocurrency based on Blockchain technology, but Blockchain technology also provides other grounds in the financial field, which are more important, and in the Central Bank, we are reviewing the terms and conditions.”

In response to the question of whether or not a decision has been made on the Blockchain at the Central Bank, he said that the studies that are being carried out on Blockchain at the Central Bank are centralized and whatever its results, including national Cryptocurrencies or the rules on the universal Cryptocurrencies, they will be announced, as the studies have not yet been reached the stage of regulation.

He stressed that the issue of Cryptocurrency is a special domain and is not simple, therefore it seems that it cannot be judged very soon, but requires further examination.

Pointing that the discussion of universal cryptocurrencies has been raised, Talebi added: Countries are now moving towards national Cryptocurrencies which will make great differences, and capital markets are also moving towards instruments based on Blockchain.   

About the function of the conferences organized by the Central Bank, he said: “These conferences gather the views of experts on this issue. And what happens to our financial system in the new era of Blockchain technology?”

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held at the Milad Tower Conference Hall on 29th and 30th of January 2019.



The Deputy Minister of Communications and Information Technology said that the expansion of Fintechs and the provision of various financial services from them led to a high volume of transaction that indicates Fintechs importance in the payment system.

The Importance of Fintechs in the Payment/Banking Industry Requires More Attention in Iran

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According to the Public Relations Department of the Monetary and Banking Research Institution, and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Amir Nazemi spoke about how new businesses can influence traditional businesses: “With the introduction of new technologies, including the startups and Fintechs, two groups was created which the first one agrees to use technology to accept and engage in traditional businesses, and an opposition group that sees these technologies as a threat to their business. This is common in Iran and in the rest of the world.”

The Deputy Minister said: "Startups as new businesses are competing with traditional businesses, and for expansion, they must work with fighter’s morale to succeed."

The Deputy Minister of Communications and Information Technology said that the expansion of the Fintechs has led to the provision of appropriate financial services to the community, and added: "We are currently seeing a large part of the payments and transactions of the banking system are made by the new entrants of the payments sector, Fintechs, using new digital services, which shows that these businesses are very important in the payment system."

He added: "There are a number of companies that have grown enormously in the Fintechs area, and some are big companies, which shows accepting these businesses by the community and increasing the popularity of using these new businesses."

The Deputy Minister for Communications and Information Technology on Fintechs stated: Fintech companies, with the cooperation of banks, can create value added in the field of monetary and banking services; now the Iranian banking industry needs transformations in order to continue to operate and survive. New businesses can be a new season in the banking industry.

"Challenges for new Startups are huge." Said Nazemi. "A large part of these challenges comes from the government. The government is keen to issue any permit, to create golden signatures and supervisory bodies that affect the activity of new businesses."

The deputy minister continued: "Another part of the startup problems is in the sectors where the startup participate, usually there is no regulation or there are old and inconsistent rules, and the government is looking to create constraints that create many challenges for the startups."

He noted that public and social acceptance is one of the problems of new businesses that exists in Iran and there is a growing public acceptance rate; of course, the economic conditions and international communication are other challenges for the new business ecosystem.

"I believe that new businesses, including Fintechs in Iran, will succeed and their social acceptance is high enough that the government and the sovereignty accept them," said the Deputy Minister of Communications and Information Technology.

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of Blockchain Revolution will be held at the Milad Tower Conference Hall on 29th and 30th of January 2019.



The Director General of the Payment Systems Department of the Central Bank announced the bank's serious plan for the change in the payment industry, saying: "Other banks and PSPs cannot meet all the needs of this department."

The Central Bank Plan for a Major Change in the Payment Industry

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According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Davood Mohammad-Beygi, on the Central Bank's plan for alternative payment systems in the country, stated: "The presence of new players in the future is of interest to all countries, especially our country."

He added that in Iran, the main players in the payment industry have been banks and PSP companies, and stated: "But now, the current players are not able to meet all the needs, because of the changes that have taken place, the expectations of people are changing and increasing."

The Director General of the Payment Systems Department of the Central Bank pointed to PSP2 and said: "Following the changes that have taken place in the expectations of the people and of course the variety of services, the EU has also seriously started its activity on PSP2."

Mohammad-Beygi, referring to Fintechs and financial messengers including the Blockchain, continued that the current payment systems are based on previous technologies and policies, but the Central Bank is planning to make serious changes in this area.

The official at the Central Bank also said that changes in the payment industry require a regulatory framework, and said: "We have localized some of the requirements for PSP2 in the country."

He said customer authentication, access to information, payment services companies active in this sector, the settlement of these companies and their monitoring of their activities, and others are among the most important issues that we started to localize in the country.

According to the director general of payment system department, in the past two years, the demands made by the payment industry indicate that the changes in payment are very serious, which indicates the dynamism and prosperity of the payment industry.

Mohammad-Beygi, emphasizing that the wave of changes to the payment industry will end to the operational phase with the presence of current players and the management of the regulator, restated: "Based on this, the Central Bank has regulated payment with Pardakht-Saz, Pardakht-Yar and Pardakht-Ban."

Referring to the fact that in all of the above documents, the way to oversee the payment industry and the activists in the industry clearly seen, he said: "the Central Bank has given up some activities to payment companies, but in the main bottlenecks related to money and the security of people, the Central Bank will be in charge."

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of Blockchain Revolution will be held at the Milad Tower Conference Hall on 29th and 30th of January 2019.



The director of the Monetary and Banking Research Institution emphasized the need for regulation for the country's Cryptocurrencies.

Divandari: We Need to Move Towards Regulation for Cryptocurrencies

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According to the Public Relations Department of the Monetary and Banking Research Institution, on the sidelines of the news meeting of the 8th Electronic Banking and Payment Systems Conference, in response to a question about the monopolization of the use of some mobile application widgets at the E-banking Conference, Ali Divandari said: "If other companies are interested in cooperating with the MBRI, our colleagues welcome them. Asan Pardakht application (*733#) has no bonus points and they collaborate with the MBRI for a better coverage of the news."

About other options for Asan Pardakht, including ticket purchases, he said: this could be checked at conference. On the other hand, this should be answered by the regulators that whether all the widgets have equal opportunities?

In response to a question asked from the director of MBRI about Cryptocurrencies, he answered: the national Cryptocurrency should be taken seriously. The national Cryptocurrency can be created and introduced at the Electronic Banking Conference, and we need to seriously move towards integrating this issue into the applications and use the applications that these types of currencies can make for us.

He demanded that, in order to respond to concerns about the use of Cryptocurrencies, we should move towards regulation, and restated: "Cryptocurrencies can provide us great opportunities. These days there is a debate about the creation of a national Cryptocurrency, and various institutions are working on it, but we have not reached a definite decision so far. Using these types of currencies can solve some of the country's problems."

About the future of the use of Bitcoin and other Cryptocurrencies in Iran, Divandari said: “The Cryptocurrency is the reality that exists and we cannot eliminate its effects. Many countries have recognized these types of currencies and moved towards regulation, and we must accept the facts and move towards regulation.”

The secretary of the 8th E-banking Conference called regulation as a factor in reducing the bad effects of Cryptocurrencies and said that in different countries have different positions on these currencies and currently the Central Bank of Iran does not recognize them and do not give them legal permits, but my point is to move towards acceptance of the facts and provide regulations for them.

On whether the view for Cryptocurrencies and the Blockchain in Iran has changed, He said that the impact of Blockchain is gradually evolving. Our banking system considered the Blockchain with little outcome, and today the world realizes that the Blockchain has a wide range of uses and carries the concept of value transfer.

"As the world is moving toward decentralization, the banking technology system in Iran is moving toward centralization," he continued. “On the other hand, our knowledge of the Blockchain is increasing and the regulatory is facing technological changes, and we should not remove it from the agenda.”

Secretary of the Eighth Electronic Banking Conference on whether or not to change the position of the Central Bank on the Cryptocurrencies? Said: "If we do not pay attention to the realities, they will impose themselves on us. The Central Bank must accept facts like any other institution."

"In the past, the Fintechs did not have a place, but today we see that each of the banks is cooperating with several different Fintechs, and Central Bank trends are subject to these changes. So we have to provide regulation for them."

In the answer to the question of the development of Cryptocurrency backed by Rials by Informatics Services Company and the nature of this Cryptocurrency, he said: According to the news, this project is about the distribution of a Cryptocurrency which is exemplified in other countries and other companies and do not devise the ability of mining which is not new.

He said: about the actions of the Monetary and Banking Research Institution in the area of ​​Cryptocurrency, we are in the research phase, and this can be practical when the Central Bank is interested in publishing the national Cryptocurrency.

Divandari on the provincial governor of Cryptocurrency in the country stated that the Central Bank is the trustee and the Ministry of Communications has also carried out activities in this area.

The head of the Monetary and Banking Research Institution in response to the question that the regulation would create a conflict for Blockchain, replied: money is a means of exchanging or valuing or maintaining value, and Cryptocurrencies also have these functions.

"Money exchanges were initially individual-based, then banks and regulations were created, and now regulations on banking transactions are annoying, and individuals cannot easily use their money, and governments have tried to solve other problems through limits on financial transactions."

"The concept of Blockchain is not that we do not have the bank and regulations, the Blockchain will have transparency, security and decentralization and macroeconomic functions, and emerging institutions and we have to see what direction we are going to move, and this is not our only challenge, but the challenge of the whole world, and central banks are studying this phenomenon."

In response to the ability of Cryptocurrency to circumvent the sanctions, he said: The government has regulated the traditional system of pursuing its goals through money and banking, it is true that the Blockchain is outside the control of the central banks of the world, but the volume of operations is not such a way as to get around the sanctions.

"Our economy is vast, and the Cryptocurrency market is a brand new market, and now it's not publicly available due to its limited publicity and business partners are not working with it, so expecting for the sanctions to be circumvented through Cryptocurrency is not real."

On monetary policy to restrict transactions and problems for economic activists, the director of the MBRI said that monetary policy is aimed at countering speculators and creating more transparency and avoiding misconduct and controlling transactions. It is done in every financial system in the world, and maybe even these were late in Iran.

"If the economic activists are faced with problems, one can think about it and solve the problems, but if the system is open, its consequences will be negative for all people," he added.

He commented on research studies about the elimination of four zero points from the national currency: MBRI had conducted a study in the past when the zero removal was proposed, and the report was submitted to the Central Bank, but the discussion of the removal of four new zeros was due to the bill of banking law and the Governor also explained that it would be a long and time consuming task.

On the issue of E-wallet and service fee discussions, which has been repeatedly debated, he stated: "This conference will raise issues in its capacity as users and regulators and stakeholders attend the conference, and place the issue on the agenda of the conference, and if there are problems with the implementation, it should not be overlooked to be raised."

Divandari continued: The subject of the fee is one of the issues that has not been resolved but, finally, it should be thought out and should not be out of the agenda. If it is not a good decision about the service fees, IT investment will be difficult.

He added: "The Central Bank is asking the MBRI to study in this area. A project in the institution has been formed and is underway, with results being submitted to the Central Bank. There are resistances in this area and if we do not resolve them it will be a problem."

The director of the Monetary and Banking Research Institution continued: "Our banking system is not cost-oriented and benefits from the interests of lending, but it varies in the world, and lending rates are considered one percent to one and a half percent higher, but in Iran, the rates should be high, because the fee is not defined."

About Iran's position in E-banking Divandari said: "We have made great progress in the field of electronic banking services, and we are among the best in services such as card services, centralized systems and money transfers. In cash transfers, we do not need checks and checks are more likely to be used as credits, but the world still uses checks and getting and clearing checks may take up to a month."

"However, on issues like Big Data and Blockchain and emerging trends, we are behind, and banks and Fintechs do not coexist peacefully. We have had neglection over Fintechs, and banks and the banking system should be more welcome to develop services."

The director of the Monetary and Banking Research Institution continued: "The card service has not been changed for many years and needs changes, and apart from a few banks, the same services are used in other banks, and if we look at these few banks, we will see that these are done by Fintechs."



The secretary of the 8th Annual Conference on Electronic Banking and Payment Systems announced that the conference will be held on the 29th and 30th of January in the Milad Tower of Tehran by the Monetary and Banking Research Institution of the Central Bank.

Holding the 8th Electronic Banking Conference; 29th and 30th of January

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According to the Public Relations Department of the Monetary and Banking Research Institution, on Monday, at the news conference with reporters of the 8th E-banking and Payment Systems Conference, Ali Divandari said: “The eighth Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held in the Milad Tower Conference Hall. The main purpose of this conference is to discuss the latest developments in the E-banking industry.”

The banks and IT companies, Fintechs, start-ups and academics are present at the conference, and in terms of the number of stakeholders attending, the conference has special status and prosperity.

He described the objectives of the conference as "explaining the trends of the banking and payment industry using the technology of the Blockchain", "the macro analysis of the international trends of electronic banking and payment systems", "the explanation and review of developments in the field of information technology with the Blockchain technology", "Exploring Barriers and Challenges to the Banking and Payment Industry", "Explaining Developments Made in the Fields of Cryptocurrencies" and "Explaining the New Financial Business Environment".

The themes of this two-day conference are "Blockchain Technology and Distributed Ledgers", "Cryptocurrencies", "Alternative Payment Systems", "Financial Technologies, Payments and Open Banking", "Fraud, Money Laundering, Scams and Ways to Combat them" and "digital evolution".

According to the director of the Monetary and Banking Research Institution, it is planned to focus on issues such as the nature of technology, implementations and technologies, the regulatory framework, regulatory deficiencies, and technical and administrative standards for the Distributed Ledger Technology (DLT), at the core of the Blockchain Revolution theme.

"At this conference, we are trying to answer the question that if these digital currencies are a threat or complementary to traditional money, and the jurisprudential and legal issues, so the use of these instruments and its legal challenges will be debated."

"The second theme of the conference is the Cryptocurrencies, including issues such as the types of Cryptocurrencies, legal and regulatory environments, the jurisprudential issues of the Cryptocurrencies, the institutions associated with the Cryptocurrencies (exchange offices), and the use of national, regional and global Cryptocurrencies" said Divandari.

Referring to the emergence and spread of the Blockchain technology and the Cryptocurrencies in recent times, he pointed out: “The Blockchain and Cryptocurrencies, in general, will create challenges for the banking system and will revolutionize the system. They will also affect business environments, which will be discussed at the conference.”

The director of the Monetary and Banking Research Institution noted: "On the topic of control, we have always moved towards centralized concentration, but in physics and fundamental studies, it has also been proven that control cannot be achieved by solely concentration, and theories have proven its relativity, therefore, inspired by these sciences, the Blockchain is also based on decentralized control."

He continued: In the third theme, which is the alternative payment systems, issues such as alternative messenger systems, regional payment systems, and new methods of settlement and commercial payment are discussed.

The secretary of the 8th Annual Conference on E-banking and Payment Systems said: "In the fourth theme that is the financial, payment and open banking technologies, important issues such as Payment Systems Instructions, Second Edition (PSD2), Regulatory Technologies (RegTech), Payment Bank and financial technology and taxation are discussed."

According to the director of the Monetary and Banking Research Institution, the fifth theme, is about fraud, money laundering, scam, and methods to deal with them. Issues such as strong authentication, macro data analysis, and the use of artificial intelligence in data recognition and data control are reviewed.

Divandari said that experts will focus on the efficiency of the banking system, process standardization, new business models, and bank and payment unions at the heart of the digital revolution.

"We see that the IT departments at banks have realized that we need both focused work in Core Banking, and we need to improve the quality and development of services, and Fintechs are small and agile groups that understand the needs of the customers and find the solution faster." he said, stating that we are witnessing day-to-day advent of various Fintechs.

The secretary of the 8th Electronic Banking Conference also referred to Dr. Nourbakhsh festival and said: "The selection of innovative banks and companies is one of the activities of the annual conference of electronic banking and payment systems, which is done in the form of competitions among participants with the observance of three benchmarks of innovativeness, applicability and potential profitability."

 He added: "This year, Dr. Nourbakhsh's festival will be held in seven sections: National Systems, In-Bank Systems, Customer Systems, Infrastructure Security, Hardware and Equipment, Platform and Social Responsibility."

Divandari also noted that next to the conference, an exhibition will be held to introduce the achievements of the country's banking service providers in the field of electronic banking and payment systems. In addition to banks and financial and credit institutions, the companies that offer banking services will also attend to introduce their services, products and capabilities.



Director of the Electronic Banking Department at the Monetary and Banking Research Institution said: The provision of open banking services in the country is based on bank cards, in order to comply with PSD2 standards, should move towards the bank account in the provision of IPAs.

Bank Account Should Be the Source of Open Banking Services

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According to the Public Relations Department of MBRI and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Nima Amirshekari said: "The world has been moving towards credit cards for over 30 years, the most famous of which are Visa and Master Cards with American infrastructure and its settlement systems that is located in American banks."

He pointed out that after the 2007 financial crisis in the world, which was mostly due to the bankruptcy of American businesses and expanded to Europe and Asia, banks and financial institutions were worried about the recurrence of the incident and the impact on the European economy from American economic problems. Because the use of US credit cards throughout the European Union was prevalent.

"The European Union pursued its goal of reducing its dependence on the United States and creating independence with the separation of the European Union's payment system from the United States," he added. "Using the new technology, the payment industry expanded to non-card platforms."

He continued: All non-card platforms ended up at a bank account number, so the European Union began to negotiate the account as a transaction originator, and the PSD2 standard created in the union.

Referring to extensive investments by banks and large corporations in order to implement the PSD2 guidelines, Amirshekari pointed out: In 2007 and 2008, banks started planning and standardizing for the presentation of various IPAs.

He stressed the need to implement PSD2 guidelines due to quick growth of Fintechs and said: "The use of modern technologies and the rapid growth and development of Fintechs has led the European Central Bank to oblige banks to enforce PSD2 Guidelines to Fintechs and offer free IPAs to these businesses."

Amirshekari pointed out that Fintechs did not have the ability to deal with banks, and in partnership with a bank, when the activity of this sector was developed, banks increased the cost of providing services, and Fintechs had to go to another bank to continue operating which the cost of switching was high. Thus, with the requirement for banks to provide free IPAs to Fintechs, the cost of switching was reduced for them.

Referring to the definition of 27-28 services on PSD2 so far, he noted: In January 2019, the provision of a series of mandatory services has been made and in September 2019, the entire service should have been deployed to EU Banks and be made available to the market and Fintechs.

 

Director of the Electronic Banking Department at the Monetary and Banking Research Institution said: "There is a good way to provide open banking services in the country, and several companies are currently providing services to banks and customers, but in order to succeed and direct their activities, they must comply with the standards of the PSD2 Directives. "

Amirshekari, emphasizing that the provision of open banking services in the country is based on the bank card, said: "Because of the successful experience of the world in this sector, in our country the activities of open banking services should be directed to the bank account. Because there is a strong authentication in providing open banking services with tokenizing method that allows banks to let the client to select the service and the required apps to withdraw from their bank accounts with their own approval. "

He recalled: Access permits to withdraw from the account of individuals with the approval of the person in open banking is possible and by implementing a strong authentication, the banking system finds the ability to provide new banking services. Therefore, the improvement of the payment industry and the banking system of the country should be consistent with the implementation of the PSD2 guidelines.



Managing Director of Beh Pardakht Mellat said: Fintechs as actors and new businesses can play a very important role in the realization of open banking and can accelerate the move towards open banking.

Realization of Open Banking with Fintechs

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According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Shahriar Khalili, on open banking and banking system of Iran, added: “Iran’s banking system has a meaningful gap with open banking due to the lack of necessary infrastructure. And eliminating it requires a lot of efforts by banks to strengthen and improve the software infrastructure so as to reduce the gap between the banking system of Iran and the global trend and to provide required customer service.”

The CEO urged the nation to pay attention to the need to review the banking system's processes for moving towards open banking in the country, and added: “I believe that the banking system processes should be reviewed in the first step and then tailored to the processes that required in the establishment of the open banking system, we need to make the necessary forecasts and place the software designs on the agenda.”

Referring to the role of Fintechs and startup businesses in open banking in Iran, he said: “I believe Fintechs and startup businesses play an extremely important role in the pursuit of open banking, because Fintechs are more excited than payment systems and banks and are keen to offer different services to existing businesses and can definitely accelerate the process of moving towards open banking and encourage banks to establish these systems.

It should be noted that the 8th Annual Conference of Electronic Banking and Payment Systems with the theme of Blockchain Revolution will be held at the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.



An expert in the field of payments said: The coordination and implementation of financial solutions based on Blockchain technology could increase financial participation and growth in global capital markets.

Enhance Financial Partnerships with Blockchain Technology Development

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According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Alireza Nobakht said: “Blockchain technology is based on a Distributed Ledger. In this context, all transactions are based on the Internet and the history of all transactions and records of the assets of individuals are kept on this ledger.”

“In Blockchain technology data is kept in the public domain rather than a central database, and the blocks are encrypted and linked together and sent to the entire network,” he said. “Therefore, all the records sent to the network will remain unchanged, which makes any fraud impossible.

Nobakht added: “In addition, using the Blockchain platform, we can carefully monitor and report suspicious customer activities.”

The sales deputy of GSS said: "It's said that Blockchain will revolutionize business processes in the financial industry and lead to a fundamental change in banks and financial institutions around the world. Hence, banks are investing in this technology to maintain their place in the center of power in financial transactions."

Nobakht emphasized: Large financial institutions are exploring ways to implement Blockchain technology to reduce transaction costs, increase transaction speed, eliminate multiple transactions, and reduce transaction fraud.

He described the Blockchain as one of the most successful Fintech projects, saying: "The Blockchain has had very positive and constructive impacts on the upgrading of Fintechs, and by eliminating the intermediaries, it has facilitated access to services and reduced costs."

Noobakht pointed out that the use of Blockchain technology can increase the speed of overseas payment processes. He noted: “The ease and speed of transactions on this platform, by eliminating conventional customary intermediaries, reduced the risk of money transfer process and secured online trading, and reduced risk due to currency fluctuations.”

The sales deputy of GSS acknowledged that the Blockchain technology and the Cryptocurrencies are a real threat to the SWIFT system, and said: Ripple, using its own cryptocurrencies (XRPs), which has the role of intermediary currency in exchanges, is a Real Time Gross Settlement (RTGS) to convert a variety of currencies, transfers, and settlements, to make international financial transactions instantly and without limitation.

By focusing on extending the scope of Blockchain in transferring funds in emerging markets, Nobakht said: "The synchronization and implementation of financial solutions based on Blockchain technology can increase financial participation and growth in global capital markets."

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held at the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.



The Central Bank's vice governor of IT technology said “I think that by the end of the year, the central bank's policies on the currency of the currencies will be announced.”

Announcement of the Central Bank Policies for the Cryptocurrencies until End of This Year

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According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Naser Hakimi, while explaining the government's view on Cryptocurrencies, expressed the latest news in this regard and stated: “The Cryptocurrencies, like any other phenomenon are a threat, and an opportunity; it is natural to resist change in a cultural and traditional way, and perhaps because of a normal human reaction.”

He added: “When a new phenomenon comes, the first approach may be denying, and we naturally focus on the threat and the detriment to deny it.

The vice governor of the Central Bank’s IT Technologies, emphasizing that the same thing applies to the Cryptocurrencies, stated: "Perhaps in the first stage a conservative view focuses on the risks that exist, of course, they exist and are real."

Hakimi continued: “But the fact is that human intelligence or policy-makers should be guided by the advantages of the new phenomenon (and, in our view, which is independent, whether we want or not, will come), and take care of potential hazards.

He also said that the same thing is happening about the Cryptocurrencies: “The Cryptocurrencies are risky in terms of money laundering, the unobservability of some transactions, the withdrawal of foreign currency, and the disturbance in the monetary system, which are not hidden, but on the one hand it creates opportunities for the system that we can use to provide alternative monetary exchange systems.

Advantages of Cryptocurrencies/securing non-productive assets and creating transparency in the monetary system

The vice governor of the Central Bank's IT technologies, emphasizing that Cryptocurrencies create tremendous transparency in monetary transactions, also stated that the Cryptocurrencies could also securitize non-productive assets.

He added that the Cryptocurrency gives the monetary system an exceptional opportunity in terms of the transparency that it brings, and added, “This issue is particularly true for liquefying and tradability of assets, which has no other solution at present.”

Hakimi considered the solutions based on institutionalization to be very complicated and said: That is why this has not been achieved so far. But Blockchain, by eliminating the middle enterprises, can make the development of these products in the form of a Cryptocurrency and other products properly.

"We must, more than anything else, have the intelligence to identify the risks and threats and adopt appropriate policies, we should not lose opportunities because of the risks," said the vice governor of the Central Bank’s IT technologies.

 

Why did not the Central Bank policies declare the Cryptocurrencies? / The Cryptocurrency is currently in the queue for review.

In response to the question that the Central Bank had already announced the policy of the bank for the Cryptocurrencies until the end of September 2018, but there were no news in this regard, and what was the reason? He said: “Our plan was to announce the Central Bank's policy on the Cryptocurrency by the end of September, and the policies have even been formulated. However, given the many engagements that decision makers have in this regard, these policies are still in the queue for review.

Hakimi restated: “The fact is that, technically and editorially, work has been completed in the same period, but has since been reviewed by the policymaker and the people who need to decide on this.

I do not communicate with the so-called national Cryptocurrency / The Central Bank's prospective program for different Cryptocurrencies.

The Central Bank’s official also responded that he is not able to communicate with the national Cryptocurrency because there might be different Cryptocurrencies for different types of uses and national Cryptocurrency is not necessarily working.

I use the term of “Cryptocurrency based on Rial” rather than the national Cryptocurrency, which is a monetary regulation debate, and is partly the policy I have already mentioned that to have a Cryptocurrency based on the Rial, gold, currency and other assets or a self-sufficient and autonomous Cryptocurrency.

Hakimi said: “In order to deal with each of these Cryptocurrencies, we should have their specific viewpoint as to which laws and regulations they are included and which bodies are monitoring them.

He emphasized that, therefore, having "National Cryptocurrency" and no other currency would be a simplistic argument. He added. "I think that the necessary policy in this regard should be based on freeing up the environment and establishing the necessary constraints and frameworks in the domain of the Cryptocurrencies."

He expressed his hope that the Central Bank's policy announcement on the Cryptocurrencies in the months remaining of 1397 and said: “I think this will happen this year, and the policies of the Central Bank will be announced; the announcement of policies is largely a policy stance of the policymaker on the Cryptocurrencies and on the other hand, the situation will be transparent along with the awareness of the sovereign’s view for those who want to work in this field.”



A payment field expert said: Getting rid of the free transaction cycle and free services is a prerequisite for the development of Fintech businesses in the country. Until this happens, we will not see a major boom in this area.

Getting Rid of the Free Service Cycle Preconditions for Fintech Business Development

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Karim Khamseh, Chairman of the Board of Novin Payment Company, spoke about the role of the new businesses in the industry, and said: “Providing free services, in addition to preventing future development, by creating shareholding phenomena in the payment industry, it also threatens the current situation.” According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems.

"This process has led to the arrival of players who, while not providing any service, sometimes asking for payment service fees, and as an uninvited guest at the table, claiming rights," he added.

Khamseh reminded: “Expansion of enterprises, including banks and corporations and payment companies will always tend to slow down the speed and agility in these institutions. If the continuity of competition, the maintenance and promotion of market share requires the provision of new services, this paradox is emerging as a challenge.

The chairman of Novin Payment stated: “The entry of new players into the industry, which has greater agility and risk-taking as compared to older and larger companies, can be a solution to the challenge, ultimately leading to a coexistence and sharing of benefits between banks and these businesses and by offering value added services on this platform, Fintechs can provide their own and the old players’ utility and profit.

He noted: “Creating a pay-as-you-go phenomenon in the payment industry, which means sharing a pay-as-you-go transaction fee over the use of PSP services, raises the risk that, if the linking and sharing of benefits in this case is not well managed, the entry of new players in this space may spark this phenomenon.

The Chairman of the Board said: “Protecting businesses with the extreme and ineffective ways widespread in the country also led to the loss of resources on one side and the disruption of the businesses on the other side.” He stressed: “We must take advantage of past experiences in the present time, and do not repeat them again.”

"The biggest problem is the lack of business models for this cooperation." He explains in a statement on the challenges in collaboration between PSP and Fintech. “Because the free transaction has made the arrival of these new players as a new partner in the profit of fixed earnings, and it's natural that old players will be less willing to give in to Fintechs companies.”

The expert in the field of payment pointed out: "Throughout the world, providing e-banking services and payments are subject to fees from the ultimate beneficiary, and if Fintechs can provide more valuable services to their users at lower cost, they will be welcomed."

Khamseh added, "Therefore, bigger banks and institutions are looking for cooperation with Fintechs, and they are not looked at as a new partner or uninvited guest over the table."

He reminded that some of the Fintech companies in the country are currently charging fees for the services they are providing, which should be welcomed and manage the process in a way that the industry’s competitive atmosphere does not push these businesses towards cheap or low-cost services.

He added that the income of these new players in the competitive market, if limited to their share of the pay-as-you-go transactions received in partnership with payment companies, would only lead to a reduction in the incomes of the infrastructure companies and would be harmful to both groups.

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held in the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.



The Secretary General of the Central Bank announced the focused studies of the bank for the use of Blockchain technology.

Blockchain-Focused Studies are on the Agenda of the Central Bank

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Mohammad Talebi said: “Most problems in the current financial world, such as fraud and counterfeiting will be solved and will change completely with the Enhanced Encrypt system in Blockchain.” according to the Public Relations Department of the Monetary and Banking Research Institution, and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems.

On the importance and necessity of serious research about Blockchain technology, with the premise that Blockchain is a new technology that is being introduced and is expected to be a major development in the world after the Internet, Talebi added: “It is predicted that Blockchain brings all the Internet-created structures into a new paradigm and make significant changes.

He said that the big changes in the financial system would be the ones that Blockchain technology would bring, and the financial system is expected to change greatly in the Blockchain era.

The Secretary General of the Central Bank described Blockchain's most important feature as a restructuring of the centralized financial system and explained that, based on this technology, the structures based on "centralized financial management institutions" would change, and they will be managed in the so-called Distributed Ledger Technology, which is Blockchain technology.

He added that the world's financial systems are currently based on centralized entities, for example, Swift runs all transactions between countries around the world, and central banks in countries operate all financial transactions within a country, but Blockchain technology changes this paradigm. That means there will not be any centralized monitoring, and everything will happen in the network.

Talebi said: “The financial system will enter the interesting world after Blockchain, for example, that Crowd financing, or collective financing, is a new phenomenon in the financial field, and I believe it will have a new form with Blockchain technology, as well as the supervision of regulatory agencies that will be applied in a different way, while the way of contribution and investment and the presence of people in the financial system will take place in a more Privacy state (Privacy and Security).

The secretary general of the Central Bank predicted that many of the problems in the current financial world, such as forgery and fraud will completely change with the Enhanced Encrypt system in Blockchain.

Talebi, pointing out to the discussion of Cryptocurrencies (Universal Cryptocurrencies), continued: countries are now moving towards national Cryptocurrencies that will make major developments, also capital markets are moving towards tools that are based on Blockchain.

He spoke about the conferences organized by the Central Bank on this issue, saying that these conferences could gather the views of experts on what happens in our financial system in the new era of Blockchain technology.

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchaina Revolution will be held in the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.



A payment service expert said: “Aggregation of identity information and the use of biometric technology, is a strategy to enforce robust authentication against money laundering, and biometric authentication has been implemented on the national smart card.”

Confronting Money Laundering with New Authentication Methods

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According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Mohsen Azizi added: “One of the security areas that is widely used in non-banking services of the banks is authentication technology. One of the strategies to deal with money laundering is to use strong authentication methods.

“Today, the dynamism and security of a system is verified by authentication,” he added. “Therefore, a system with no authentication is known as an unsafe system.”

The expert in the field of payment stated: “Authentication is largely based on information and data. Of course, the traditional authentication method in the country is old-style and is done in person in bank branches by matching the faces of individuals with identification documents, such as national cards.

Azizi emphasized: “Authentication data is very valuable and, if combined, processed and analyzed in one place, will facilitate access and remote authentication operations in the future.”

He highlighted remote authentication as the most important factor in providing remote services to the financial industry, and noted: Strong authentication is one of the most important factors in the development of remote services and the move towards digital banking in which biometric technology has a significant role.

Azizi continued: “Biometric authentication, which is the authentication of individuals by measuring the unique characteristics of the human body, is one of the strongest types of authentication that depends on the type of devices and algorithms used.

"The best practices in this area is the use of biometric authentication, which is based on the technology and have been used in intelligent national smart cards. The fingerprint scanning, electronic signature, and eye iris in the National Intelligent Execution Card and the biometric information of each individual has been registered in an integrated system in the registered domain," said the field expert on the question of how best to use strong authentication to prevent fraud and money laundering in relation to the infrastructure and laws of the country.

Azizi said, collecting identity information and using biometrics as one of the best ways to apply strong authentication to deal with money laundering. Using Face Detection or fingerprint, which is currently implemented in smartphones with the development of technology, is a good way that can be implemented in the financial industry, which has been implemented in Mobile Banking of some financial institutions.

"The data is a good source for analyzing how the customer’s transaction behavior are that is applied to identify fraud types," said the consultant of the Informatics Services Company on developing new technologies and data governance as a way to identify and counter fraud and money laundering in the financial industry.

 

Azizi pointed out: “Identifying fraud and money laundering in the payment industry that is card based, using data, and analyzing customer behavioral information are good tools for preventing fraud and providing timely warnings to customers and payment companies in detecting fraud and money laundering.

The field expert added, "The algorithms used to analyze customer behavior play an important role in detecting fraud and suspicious transactions." However, customer behavior information in the banking and payment industry is not only effective in preventing fraud but also in improving business models.

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held in the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.



An expert on the field of payment, emphasizing that the movement of the country's banks towards open banking is unavoidable, said: “The most important advantage of working with FinTechs is the promotion of commission-based culture and the increase in profitability.”

Increasing the Profitability of the Banking Industry in Partnership with FinTechs

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According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Shahriar Khalili commented on the benefits of cooperating with FinTechs by providing open banking services in the industry, saying that the most important advantage of this cooperation is that FinTechs, with the introduction of fees for their services they provide, lead to the promotion of commission-based culture in the banking and payment industry and increase profitability in this sector.

Referring to the growing activity of innovative businesses in the country, he pointed out: "The various businesses in their financial transactions use the services of FinTech and startup companies, and the services that these businesses offer, in some cases, are in close competition with payment companies."

Khalili noted: “The cooperation of FinTechs and payment companies will bring innovation, increase access to financial services, facilitate complex administrative processes, increase efficiency and create new business opportunities that ultimately affect people's quality of life.”

The company's CEO noted that the general acceptance of FinTechs, which quickly by simplified relationship could provide solutions to improve customer experience with offering a wide range of high value added services, made these new businesses a serious threat to the banks.

He stated that the banks of the world, by offering Open Banking services, turned this threat to the opportunity and chose the cooperation with the FinTechs as one of the strategies to maintain their survival.

Khalili stated: Open Banking, as a new paradigm that is rapidly emerging in the banking world has become an inescapable choice and has expanded the range of banking operations into an area beyond the banking network. Therefore, the banks of the country should join it as soon as possible.

Managing director of Beh-Pardakht Company, with paying attention to the fact that financial companies are seeking to develop the market and attract mass users, said: “The high capacity of FinTechs and Startups in the field of financial services has made cooperation with these innovative businesses a necessity for banks.”

Therefore, if the banks of the country do not start cooperating with FinTechs by providing open bank services through APIs, they will gradually lose a big market.” he added.

Khalili noted: “The high potential of FinTechs and Startup companies in the field of financial services as well as the position of banks in the financial industry has led to a symbiosis and bilateral partnership in this section.”

The Mellat Beh-Pardakht Company's CEO insisted: “To provide open banking services, the banks' infrastructure should also be able to provide such services. Therefore, the agility of the bank in providing open bank services is also important in this regard.

In response to the question that banks in the country are agile enough to provide open banking services, said: “Some banks have provided the opportunity to provide open banking services and actively cooperate with FinTech companies by creating appropriate infrastructure in their organizations.”

Khalili added, “But some of the country's banks do not have the necessary infrastructure to move towards open banking, which should seek to resolve the problem as soon as possible in order to maintain their position in the market.”

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held in the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.



The director of the Electronic Banking Department of the Monetary and Banking Research Institution, with emphasis on the different nature of the Blockchain technology and the cryptocurrency, said: Blockchain's proper uses lead to an increase in value for banks.

Increase in Value Added of Banks with Blockchain / Cryptocurrency

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According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarter of the 8th Annual Conference on Electronic Banking and Payment Systems, Nima Amirshekari added: "With regard to the issues concerning the prohibition of the exchange of cryptocurrencies in the country by the Central Bank and the contravention of this policy with the theme of the 8th Annual Conference on Electronic Banking and Payment Systems, it is necessary to point out that the Blockchain technology and Cryptocurrencies are two different issues that are to be discussed at the 8th Annual Conference on Electronic Banking and Payment Systems and the correct uses of the Blockchain is debated so that the country's banking and payments officials get familiar with this technology, and improve their knowledge and awareness of the issue.

He added: “Using the various applications of this technology in the banking and payment industry will create added value for banks, and industry activists will be guided on how to enter this area at the 8th Annual Conference of Electronic Banking and Payment Systems.”

Amirshekari argued: DLT or Distributed Ledger Technology is a general technology on how to use extensive databanks to update database and spread on the network nodes. In the Pyramid Technology of DLT and its applications, Distributed Ledger Technology (DLT) is located at the bottom of the pyramid.

He pointed out: The most widely used of the Distributed Ledger Technology is in extensive databases, which has been among scientific and academic topics since the past 20 years. One of the derivatives of this technology, which has a narrower range, is the Blockchain Technology, which uses the (DLT) to connect transactions.

Amirshekari continued: This means that Blockchain utilizes the Distributed Ledger Technology (DLT) to connect records in a chain that can be traced and tracked through transactions on this platform.

He reminded that Blockchain technology is very effective for interconnected transactions, one of the uses of this technology is the registration of financial records, which are most used in banking and payment industries.

The payment technology expert acknowledged that Blockchain technology could be used for voting, Know-Your-Customer authentication (KYC) and other multiple cases, and one of its primary uses is in the area of ​​Cryptocurrency. Hence, the production of a Cryptocurrency that can function with or without backing on a specific route is one of dozens of applications of this technology.

He emphasized: Bitcoin is also a kind of Cryptocurrency that there is a lot of doubts about it, like the lack of backing for it, being untraceable and its high volatility. Of course, it's important to note that Bitcoin is one of the millions of DLTs and Blockchain derivatives that can be used for money laundering and criminal exploitation.

Amirshekari emphasized: The 8th Annual Conference on Electronic Banking and Payment Systems is named after the Blockchain technology, due to the importance of this technology. Because in all the IT trends in the financial industry, the Blockchain is considered as one of the evolving innovations in the banking industry in a 5 to 10 years time frame.

Referring to the fact that the Blockchain technology has a different nature from Cryptocurrency and Bitcoin, the Monetary and Banking Research Institution, as the research arm of the Central Bank, intends to focus on the Blockchain applications in the banking, financial, and payment industry at the 8th Annual Conference on Electronic Banking and Payment Systems, to raise the awareness of banking industry activists about the implementation of unnecessary projects that would only lead to the loss of resources.

Amirshekari emphasized: The Monetary and Banking Research Institution, as the Central Bank's academic arm, will discuss the uses of the Blockchain technology and the benefits of using this platform in the banking and payment industry, and specifies the direction of the banks in this area.

He continued: “Examining the different dimensions of the Blockchain technology and its applications, is a reflection of the differences between this technology and the Cryptocurrencies, which leads banks and activists of this sector to choose, with a deeper knowledge, the objectives of investing in this sector. Importantly, one of the reasons for the naming of the 8th Annual Conference on Electronic Banking and Payment Systems was the Blockchain Revolution.”

The director of the Electronic Banking Department at the Monetary and Banking Research Institution said that promoting transparency in the financial and banking industry is one of the most important benefits of using the Blockchain. “Of course, in some cases it is mistaken that the technology cannot be tracked out but there are applications such as the KYC mechanism and the authentication mechanism which prove opposite. One of the uses of Blockchain is the authentication and identification of individuals in financial networks, which is different from the previous known methods for which the rules and regulations have been laid down. Hence, the Blockchain carries out the process of authentication with new and consensus methods, i.e., which uses mathematical mechanisms for the identification of maximum and minimum members of the network.

According to him, mathematical mechanisms are far more powerful than traditional mechanisms. For example, authentication in the bank will be done by matching the national card with the face of the people, however in Blockchain, the process of authentication is performed with various technological tools, including biometrics, which includes face detection, sound, eye iris, and fingerprint.

Director of the Electronic Banking Department of the Monetary and Banking Research Institution, continued, “In the Blockchain, there is a database of all biometric indicators, which, in lieu of the human factor, computer performs the authentication mechanism. Of course, this platform has the advanced capabilities, which does not operationally allow replacing the record of biometric indicators of individuals with counterfeit records, since the inscription of each record in a Blockchain is subject to confirmation by the majority of the network.

According to him, authentication in the Blockchain networks is not necessarily bad, but is a new method that, if understood and legislated, can be used efficiently.

He emphasized: The advantages of using the Blockchain in the financial industry and its differences with Cryptocurrencies are the issues that should be discussed at the Electronic Banking Conference so that those with more information can make this knowledge available to all professionals and activists in banking and payment network.

Amirshekari said all the speakers and lecturers of the conference are those who are fully aware of the Blockchain technology and can be effective in leading the banking system in the Blockchain area. Also, foreign and domestic speakers, and representatives of large domestic and international companies have been invited to discuss issues related to raising the awareness of banking and payment activists, as in previous years.

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held in the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.



The director of the Informatics Services Company said that given the fact that the Blockchain is a technology, no country can prevent the entry and activity of other countries in this area.

Creating Restrictions in Blockchain is not Possible

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According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Sayyed Abutaleb Najafi, in responding to the question that if it is possible to create restrictions on the Blockchain at the international level, said: Given that Blockchain is a technology and is not limitable, therefore many companies are now using it in Iran.

The CEO of Informatics Services Company emphasized: No country can prevent the use of this technology in other countries, but if there is an agreement on regional payments on Blockchain platform, a bank that exchanges currency-backed securities in regional agreements in order to settle transactions can be banned.

“Many experts say that with cryptocurrencies, sanctions are circumvented, while the cryptocurrency base is the use of Blockchain technology, and it cannot be used as a tool in the subject of sanctions management in regional and international exchanges.” he said in a speech on new methods for settlement and commercial payments in international financial transactions.

He considered the political and economic agreements between governments on the Blockchain platform with the use of cryptocurrencies, to be the most important issue in international exchanges, saying that this has faced a number of complexities on how to settle international financial transactions and who or which institution in which country is the settlement agent. But the most important issue is the cryptocurrency used in regional and international financial exchanges.

The CEO of Informatics Services Company, arguing that assets that agreed upon by all countries should be considered as cryptocurrency backing for regional exchanges, which can be gold, Dollar and Euro, added: “If such agreements are formed, at next stages, storage of backing in the agent bank, as an institution for settlement, must be done.

Najafi noted: The above are the main challenges in conducting financial exchanges with cryptocurrencies and, if these obstacles are not resolved, this novel financial instrument cannot be used in the region for commercial exchanges.

He argued that major trade exchanges are being made by economic actors, emphasizing that motivating and encouraging economic actors to take advantage of Blockchain is another factor to be taken into consideration, but merchants confidence in a robust legal framework for financial exchanges on Blockchain platform, and the guarantee for the security of information and the risk of transactions at the time of implementation has particular importance in using cryptocurrencies to manage regional financial and trading exchanges.

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held in the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.



An IT expert said: The RegTech startups are online businesses that with the focus on technology, facilitate regulatory requirements, and accelerate and improve performance across jurisdictions, including taxation.

Improve Tax Performance by Developing RegTech Startups

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 According to the Public Relations Department of the Monetary and Banking Research Institution, quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Nima Namdari, about the role of modern technology in the field of taxation, said: “Wherever a regulator is associated with a number of stakeholders, RegTech makes sense. As a result, the cooperation of the RegTech Fintechs with the tax organization as a regulator that determines the financial performance and mechanized tax calculation procedures, will facilitate, accelerate and improve the performance of the tax organization.”

On description how RegTechs work in the tax field, he stated: “There are US platforms in the tax area, most notably TURBOTAX. In this country, since taxes are collected from individuals, individuals face numerous problems in filing tax returns.”

Namdari added: Filing tax returns is technically not in a way that anyone can do alone. Therefore, there are number of startups in this section that allow individuals to complete electronic filing of tax returns. Also, these companies take responsibility for interacting with tax authorities to handle personal declarations at speed, without misconduct and abuse.

Deputy Director for Development and Innovation of Tose’ Farda  emphasized that the entry of Fintechs into the US tax area has resulted in timely and correct payment of taxes by individuals and getting it at a timely and correct manner in the tax organization. These businesses are private and platform-based in other countries.

He stressed that "RegTech Startups" are online businesses designed to facilitate processes between the authorities, the government and citizens and their activities are also relevant to the tax area.

Namdari noted: In Iran, about 15 to 20 years ago, when the comprehensive tax plan was launched, the issue of the entry of number of companies that contribute to accounting and tax processing was taken into consideration. Therefore, if RegTech startups are created in the tax area, they can improve, accelerate and facilitate this operation.

"Three major obstacles have led to the lack of development of RegTechs in the country, with the first obstacle is that the Iranian government is extremely conservative and cautious in providing information access to the outside and unlocking of the APIs." he said, referring to the obstacles that led to the absence of the RegTechs.

Namdari stated: the second obstacle is the absence of a clear and explicit rules for the cooperation of online businesses and government agencies, saying that the lack of regulatory in providing G2C (providing information between government and citizens) and G2B services (providing information between government and private companies) has made the activities of RegTechs harder in the country.

Referring to the activity of the virtual government counter office, he acknowledged that the government has accepted access only to this level, but the communication and cooperation of state institutions with the private sector are subject to legal constraints.

The expert in the field of payment said: “The third obstacle is the mental and psychological impact of the cooperation of innovative businesses and the private sector with the government in the field of e-commerce.” He said: “The lack of cooperation with government institutions due to unpredictability of policies as well as misconduct is a serious obstacle to the development of RegTechs in all areas and especially in the tax area.”

It should be noted that the eighth annual conference of electronic banking and payment systems with the theme of the Block of China's Revolution will be held in the center of the Milad Tower Conference Hall on 29th and 30th of Janurary 2019.