Penalties, hardening and bilateral relations between the United States and Iran have been steadily worsening over the last two years. The economic sanctions now weighing on the country of Hassan Rouhani could, in addition, have a negative impact on the economy of this country – OPEC’s second largest oil producer – slowing global growth.
Nevertheless, this diplomatic failure allows a slight glimmer of hope to emerge for any alternative financing. After North Korea last September, the Russian Federation in January, Venezuela in March it is Iran’s turn to consider turning to cryptocurrencies.
Indeed, in order to protect themselves from any volatility of the local currency rate – the Iranian Rial – having nonetheless suffered a strong depreciation against the dollar during the last twelve months, a part of the local population is rushing on the famous decentralized currency.
” Since the exchange offices are closed, the sanctions are approaching and the dollar appreciates sharply against our currency, a good idea seems to be the use of Bitcoin. I know there are a few people here who are selling and buying Bitcoin via LocalBitcoins. It seems for the moment that this is the only way to make transfers abroad; I therefore conclude that other people will do it too. It will be difficult, however, because the inflation of the Iranian rial is very pronounced and many people will not be able to afford it.“.
Iranian living in the United States and trying to get money from his parents via Bitcoin.
Remember, however, that the country has forbidden trading this currency at the beginning of this month; Mohammad Reza Pourebrahimi, President of the Iranian Economic Commission stresses that more than 2.5 billion dollars were transferred out of the country via this process.
To address these issues, Jayad Azari-Jahromi, Minister of Information and Communication Technologies (ICT), announces that an experimental model of a local crypto project is ready. Numerous reports and analysts argue for the possibility of public cryptocurrency development.
Iran’s Development Bank has banned all banks and institutions from facilitating cryptocurrency transactions. If Iran really develops a local crypto currency, then the country will follow in the footsteps of its Venezuelan predecessor. Many see Petro as a means of circumventing the economic restrictions affecting the country in major difficulty even if it was banned in the United States. If Iran decides to follow the same path, there is a good chance that this new currency will also be banned from different countries.
The president of the Economic Commission of the Iranian Parliament says that most of the country’s cryptographic activities are speculative investments. Fearing the threat of cryptocurrencies weighing on Iran, he added that it is therefore necessary for the government to develop a national virtual currency.