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Iran found using cryptocurrency is a solution to bypass economic sanctions

Iran has been struck by a monetary crisis in recent months after its fiat currency, the rial, plunged to historic lows against the US dollar leading up to US president Trump formally withdrawing from the Obama-era nuclear deal with Iran.

But a solution was however found. After being threatened with new sanctions, Iran is surprisingly emerging as a “cryptocurrency-friendly” nation. In an official statement given by the Central Bank of Iran, the country is in advanced talks with authorities to develop means to catalyze the use of cryptocurrencies for daily transactions.Also more, the Parliamentary Commission for Economic Affairs of Iran views the use of cryptocurrency as a viable substitute for the U.S. dollar and SWIFT’s interbank payment system. On the other way, Iran has established cooperation with Russia on the use of cryptocurrencies. “We will be the first countries that use cryptocurrencies in the exchange of goods,” Mohammad Reza Purebrahimi, an official of Central Bank of Iran (CBI), said during a meeting with the head of the Federation Council Committee on Economic Policy Dmitry Mezentsev.

Iran-image
Emblematic image from Iran

Citizens of Iran are increasingly turning to cryptocurrencies. Iranis can also consider the pioneer cryptocurrency as a relatively safe store-of-value, as the Rial continues to weaken against the U.S. dollar drastically. Iran’s ICT Minister Mohammad Azari-Jahromi confirmed the state’s effort to develop a state cryptocurrency powered by blockchain technology. Russia has been reported to be heavily involved in the development of Venezuela’s ‘petro’, the world’s first state cryptocurrency. „We can settle accounts with our counterparties all over the world with no regard for sanctions,” Putin’s economic advisor Sergei Glazev told official.

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