Iran Possibly Announce a State Cryptocurrency: A Blow on US Sanctions

The Islamic state is going to regain the confidence of its citizens which was shuddered due to the unfair US sanctions. The country is not going to sit quietly and bear the incapacitated economic surroundings that Trumps government rule has tried to impose. Iranian government probably coming up with its first state-backed cryptocurrency. According to the Qatar based international media outlet Aljazeera on Jan. 29.

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The Iranian cryptocurrency as claimed by many is going to subside the effects of the sanctions on the Iranian financial institutions to conduct transactions globally. Since the middle of 2018, Iran was facing issues because the Trumps government had created and imposed certain rules against it claiming “malign activities” being carried out by the state. The shocking sanctions followed in November when few Iranian banks got banned from Swift to discontinue the transaction services of import and exports payment exchange and left them with other alternative money exchange facilitators. Swift is a the Belgian-based global messaging system that facilitates cross-border payments.

The law resulted in Iranian people helpless and prohibited from the Swift payment system to make and receive a business deal for foreign trade conducts. After analyzing the after effects from the economic front the government decided to launch its own cryptocurrency where cross-border transactions can be carried out without the need of any approval and a sidestep to save the country which is tried to be damaged by the inappropriate US sanctions.

Reportedly, the announcement of digital currency can be made at the annual two-day Electronic Banking and Payment Systems conference themed “blockchain revolution” which is taking place in Tehran on Jan. 29.

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The report suggested that the state-backed digital currency may be rolled out in two phases. In the domestic crypto space, Rial would be the 1st crypto which supposedly is exercised for transactions between Iranian commercial banks and other internal active institutions. However, it would be accessible by the citizens at a later phase with a view to help people in making the payments to avail local good and services.

It indicates that this digital currency would be for internal use in the country and not directly exchangeable between Iran and other nations. So to say as of now citizens of Iran is waiting for the green light which the government has already signaled but not yet activated.