Tehran cab drivers, bicyclists, and pedestrians are hooked on the "Hamster Kombat" app amid a heatwave in early June in hopes of making money, a frenzy underscoring Iran's economic problems ahead of the presidential election.

"Hamster Kombat" shows a country struggling with Western sanctions, inflation, and unemployment. The app's popularity comes as contenders pledge economic recovery after President Ebrahim Raisi's helicopter disaster in May, according to a report from AP News.

Amir Rashidi, Miaan Group head of digital rights and security, stated that Iranians who have heard about Bitcoin for years are using this app out of optimism. It shows desperation."

The Central Bank of Iran's (CBI) June 21 digital rial pilot program has focused on Kish Island, a tourism attraction and free trade zone. This application allows customers to pay for goods and services using the digital QR scan, bypassing interbank settlements.

To meet economic demands, the CBI promotes Iran's digital economy and micropayment efficiency. However, the public's enthusiasm for "Hamster Kombat" reflects the dismal financial condition, with vital commodity prices rising and the rial depreciating.

Authorities Says Hamster Kombat Might be Risky

Law enforcement has noticed that the app is part of the West's "soft war" against Iran's theocracy, according to Iranian military deputy head Rear Adm. Habibollah Sayyari. Authorities also cautioned that the app's promise of quick fortune discourages work and business.

Ayatollah Nasser Makarem Shirazi, a 97-year-old Shiite religious expert, called Bitcoin "the source of many abuses" and advised against using "Hamster Kombat" or other Bitcoin applications.

Despite these warnings, the app remains popular, indicating Iranians' economic problems that motivate them to seek financial stability elsewhere.

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In January, Iran's Bit24.cash bitcoin exchange exposed over 230,000 consumers' personal data due to a setup issue, as reported by Bitdefender. The leak included passports, user IDs, credit cards, and written consents submitted by regulators.

Service setup errors compromised user privacy and security. Bit24.cash, like other cryptocurrency exchanges, requires KYC to avoid fraud.

Iran's Digital Currency to Help Boost Economy, Micropayments

Recently, the CBI launched a trial scheme for its central bank digital currency (CBDC), the digital rial. This measure aims to facilitate domestic micropayments.

According to Cointelegraph, banking clients and visitors on Kish Island, a Persian Gulf free trade zone and famous vacation destination, can use the digital rial. Many nations do not need visas to visit the island, which receives 12 million people annually.

The Kish Island public deployment expands the 2023 digital trial program. Users can pay for products and services by scanning a barcode with suitable software and replacing cash and bank cards. According to the CBI, digital currency does not require interbank settlement, allowing quick currency transfers and improving payment security.

The CBI stressed that the digital currency's main goal is to boost Iran's digital economy and increase micropayments. Other aims include strengthening the country's payment infrastructure, reviving electronic banknotes for small payments, introducing new payment technologies, and controlling private money risks.

Iran has controlled its cryptocurrency mining business since 2018, but it still bans Bitcoin payments. This ambivalent position reflects national security concerns and the possibility of cryptocurrency helping Iran avoid U.S. sanctions.

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