Iran Planning To Launch its Own Cryptocurrency

Jul 27, 2018 at 10:49 Update Date :Jul 27, 2018 at 10:49 UTC

Iran is moving forward to implement its plan to develop a national cryptocurrency as a solution to bypass new economic sanctions by Donald Trump.

In April, the government reportedly said that it would be developing a domestic cryptocurrency as an experiment in the backdrop of US pulling out of Iran’s nuclear deal and other sanctions including ban on the access of US dollars and amendments in the crude oil sanctions.

According to Iran’s official news agency PressTV, the plan to develop the cryptocurrency is presently on the agenda of the Science and Technology Department of the government.

“We are trying to prepare the grounds to use a domestic digital currency in the country,” said Alireza Daliri, the deputy head in charge of investment affairs “This currency would facilitate the transfer of money (to and from) anywhere in the world. Besides, it can help us at the time of sanctions,” he added.

Last year, the central bank of Iran was studying Bitcoin as a channel for the country after it has been disconnected from international payments network. However, later on, it rejected the whole idea of cryptocurrency.

Lately, the government has fired the governor of its central bank, Valiollah Serif, for being passive in preparing for US’s sanctions.

Alireza stated that the department is aiming to amalgamate blockchain technology with the central bank in the coming months, coming up with a digital currency for general use across different banks of Iran.

The announcement is regarded as a step ahead with the government’s goal of developing cryptocurrency and blockchain tech.

On Wednesday, Iran’s Financial Tribune reiterated Amir Davaie saying that the technology would be implemented just for clearing bank transactions and later on with more experience, it could be made public. Davaie serves as an advisor to the telecom industry.

Additionally, in the meeting held early this month, Daliri declared that he’ll be backing up the development of digital currency, adding:

“[O]ur goal is to guarantee the success of those entering this field and conclude contracts in this field.”

He also doubled down on the dedication to launch “mutual cryptocurrency”, facilitating payments between the country and foreign businesses.

Iran isn’t the only country using cryptocurrencies for bypassing sanctions. Venezuela had also recently launched a digital coin called Petro, linked with the country’s oil reserve. The coin was further banned by America for its people.

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