The National Cyberspace center of Iran has announced the completion of the drafts for the creation of a state-sponsored cryptocurrency. The project was developed under the instructions of Hassan Rouhani, President of Iran.

According to the report released on August 25, the state’s cyberspace center has readied a draft for the state-backed cryptocurrency.

It was earlier reported that Saeed Mahdiyoun who serves as a deputy director for Iran’s Supreme Cyberspace Council confirmed that the country’s cyberspace authority was indeed pursuing the idea of a national cryptocurrency.

The previous reports suggested that Iran decided to create a state-issued token. So as to avoid likely sanctions by the U.S. as well as to facilitate easy transactions for its citizen. The president of Iran Hassan Rouhani instructed the cyberspace center to work on a strategy. However that will reduce the challenges faced by the implementation of U.S sanctions in early August.

It will be recalled that earlier this year, Venezuela launched the first national cryptocurrency Petro. The move by Iran to follow Venezuela’s footsteps has been seen by the cryptocurrency community as a deviation from the initial decentralized concept that governs cryptocurrencies.

The Legality of Cryptocurrency In Iran

Further Mahdiyoun says that the uncertainty surrounding the legality of cryptocurrencies in the country will soon be at rest. He explained that the central bank of Iran will officially announce its stance on the subject matter at the end of September.

Presently all crypto-related transactions are banned by Iranian banks and credit institutions. The ban that was implement late in 2017, as a result of money laundering risks over such transactions.

The verdict of the central bank on the legality of cryptocurrency will shed more light on the future of cryptocurrency in Iran. Saudi Arabia earlier this month banned the cryptocurrencies trading,even though it was earlier reported that the country was planning on implementing some of its functionalities into their economy.