Iran to launch state-run cryptocurrency to bypass USA sanctions

Iran to launch state-run cryptocurrency to bypass USA sanctions

Iran to launch state-run cryptocurrency to bypass USA sanctions

Even though this contradicts (and reverses) the Bank's previous ruling in April 2018 when it banned any and all cryptocurrency dealings throughout Iran, the new development could be of much help to the deteriorating post-sanctions economy of the country, especially with the falling value of its national currency, the Rial.

As per the reports, the cryptocurrency is expected to be unveiled in phases. Following the decision by the current US government to fully restore sanctions against Iran later in the year, the government increased its efforts towards the state-owned cryptocurrency. Moreover, it is to tackle the issue arising from SWIFT blockage which is no longer assisting Iran's bank for global money transfer to pay for imports. Its at this event that its thought that the Iranian state will take the opportunity to announce the launch of its own central bank digital currency (CBDC).

Sanctions-hit Iran could launch a cryptocurrency later this week. This has to be crippling for the country, resulting in them having to seek out alternative methods of moving money. It is quite possible that the Iranian government is trying to protect its fiat Rial, or possibly clear the way of competition before launching some state backed crypto of its own. This hard line approach culminated in the government banning cryptocurrency trading back in April of past year.

The Central Bank of Iran appears set to prohibit "unapproved" cryptocurrencies from being used for payments in the country, according to a draft report obtained by CoinDesk. As Smartereum reported, the Iranian government began collaboration with the Central Bank of Iran (CBI) and some local private consultancy firms who have the expertise to develop digital currency. Phase two implicates the rolling out of the digital currency to the Iranian people. A crypto Rial will be no replacement for Bitcoin and it is unlikely to gain any traction on global crypto exchanges but it is a significant step toward financial independence of centralized payments protocols.

Russian Federation is in a similar position and it has been speculated by many that it would embrace a state cryptocurrency.

"According to our information, an active development of an Iranian version of Swift is now under way." .

What's different about these state-cryptocurrencies is that they reject some of the original foundations of cryptocurrency exchanges, including their independence from state regulation and control.

Some of Iran's crypto enthusiasts believe that support from country's government for CBDC will create "a favorable environment" on the ground of crypto industry within the country.

Iran Security Official: No Intention To Increase Range Of Missile Systems
Dean Ambrose to leave WWE after WrestleMania 35: RAW megastar's frustrations explained