Iran Lifts Ban on Bitcoins, ICO’s With State-Backed Crypto in Offing

Jan 29, 2019 at 18:30 Update Date :Jan 29, 2019 at 18:30 UTC

Iran seems to have retraced it’s step of banning cryptocurrencies with one eye on developing a state-backed cryptocurrency and another on establishing an international payments network with foreign states.

Iran’s Big Announcement

Earlier today, according to reports by Al Jazeera, Iran’s central bank has prepared an initial draft on crypto laws, including the upliftment of previously instated bans on Bitcoin, cryptocurrencies, ICOs.

This announcement, however, comes with its own set of restrictions with regard to the use of digital currencies in the country.

Individuals are now entitled to own bitcoin, although financial institutions will probably be prohibited from carrying out cryptocurrency-related transactions any time soon, a step thought to be necessary to keep preserve rial’s valuation.

In addition to the above, the draft now formally recognizes entities such as cryptocurrency wallets and exchanges alongwith activities like mining that generate cryptocurrencies, requiring enormous amounts of power.

Iran’s Crypto Rial Might Soon Become A Reality

According local news publications, Iran is negotiating with eight foreign countries to establish a network that makes of cryptocurrency payments for international payment transactions.

As per the article on the issue of US sanctions levied on Islamic state, the country is looking for ways to plot around the restrictions imposed on foreign trade by the Trump administration.

Mohammad Reza Modoudi, the head of the country’s Trade Promotion Organization (TPO), said:

“Representatives from Switzerland, South Africa, France, England, Russia, Austria, Germany, and Bosnia have visited Iran to hold related talks about the issue.”

News publication Al Jazeera recently reported that Iran and Russia might be collaborating on designing a network that can operate outside of SWIFT, the financial-messaging network from which Iran was kicked out.

The report states that Iran, Russia and Armenia have already put in place a trilateral agreement with blockchain technology as the basis for any developments.

A Russian authority figure, Yuri Pripachkin, said on the topic:

“According to our information, an active development of an Iranian version of SWIFT is currently under way.”

In an earlier report on the subject of the Islamic state-backed cryptocurrency, the ongoing annual Electronic Banking and Payment Systems could serve as platform for it’s unveiling.

Also Read: Elections Canada Ponder Over Cryptocurrency Donations In The Upcoming Elections

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