US sanctions imposed on Iran have become particularly felt by the Iranian authorities. Trying to overcome them and improve the country's situation, Iran strives to develop and issue its own national cryptocurrency. According to local media, the central bank as well as numerous Iranian companies create foundations and prepare for the creation of cryptocurrencies, probably on the example of Venezuelan Petro.
The Central Bank of Iran cooperates with domestic technology companies on the cryptocurrency project and expects that a new encryption system using blockchain technology will be introduced into the national banking system within the next three months.
"We are trying to prepare the basis for using the national digital currency in the country. This currency would facilitate the transfer of money anywhere in the world. It can also help us when sanctions are imposed, "said Alireza Daliri, spokesman for the Iranian authorities
The idea of using cryptocurrency to circumvent American economic sanctions is not new, and has recently gained popularity mainly thanks to Venezuelan Petro, which was also intended to circumvent US sanctions. Because US President Donald Trump increases the pressure on the Iranian regime, it is not surprising that the country is preparing a "cryptographic plot" for future US activities.
The Parliamentary Economic Commission of Iran obliged in May this year the central bank of Iran to take action to launch a cryptocurrency for payment. One of the officials described this as: "one of the good ways to circumvent the use of the dollar, and also for the replacement of the SWIFT system." Currently, the project has developed to a higher rank and most likely will see the light of day.
The central bank of Iran and the official ban on trading in cryptocurrencies
In April this year, trade in cryptocurrencies in Iran was officially banned by decision makers. The Central Bank of Iran has prevented all banks in the country from trading in cryptocurrencies, including Bitcoin. Iran decided to make this move through the controversial issue of money laundering using cryptocurrencies, and the decision of the Iranian authorities alone could be linked to an extremely low rate of the national currency (Iranian rial) and concerns about the imposition of repeated sanctions by the US.
Petro and sanctions
The President of the United States, Donald Trump, issued a ban in March 2018 preventing US citizens from engaging in a transaction using the currency supported by crude oil and other Venezuela deposits - Petro. This was a continuation of the sanctions that the US imposed on Venezuela in connection with the enormous debt to the United States. The virtual currency of Venezuela was intended mainly to circumvent US sanctions.
What do you think about the decision of the Iranian authorities to issue a national cryptocurrency? Can an Iranian idea break through Petro's cryptocurrency? We invite you to the discussion!