Iran Finalizes State-backed Crypto Project

Iran finalizes state-backed crypto project that is aiming to help the nation to bypass the US sanctions. However, it is still unclear when exactly the cryptocurrency project will come to life. 

27 August, AtoZ Markets – Iran’s government-backed cryptocurrency project has reportedly finished its final stages of development. According to Iran’s National Cyberspace center, the country’s cryptocurrency project has been mostly led by the President of Iran, Hassan Rouhani.

Iran Finalizes State-backed Crypto Project

Local news outlets in Iran have reported that the deputy director of Iran’s Supreme Cyberspace Council Saeed Mahdiyoun has stated that the nation’s officials were actively developing a state-backed digital currency. However, it is still unclear when exactly the cryptocurrency project will come to life.

Mr. Mahdiyoun has been quoted as saying that Iran’s regulatory authorities and its central bank could soon issue an official statement in regards to the legality of cryptocurrency transactions. As per him, the Iranian government is looking to clarify its position regarding cryptocurrency by the end of September.

Presently, financial institutions in Iran have no authority to offer banking services to cryptocurrency-related firms or individuals that transact in cryptocurrencies. This might be the case due to the Iranian government referring to concerns about money laundering activities associated with cryptocurrency market.
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According to a number of online reports, Iran has been planning to bypass US-led economic sanctions by issuing a government-backed cryptocurrency.

Iran to Bypass US Sanctions?

Earlier last month, AtoZ Markets reported that the Iranian government's Science and Technology Department has revealed a plan to develop an "indigenous" cryptocurrency in a bid to overcome the US sanctions. According to the local media, the department’s deputy head that is responsible for investment affairs, Alireza Daliri, has stated that the project is currently under the joint development with the Central Bank of Iran. Daliri has been quoted as saying:

"We are trying to prepare the grounds to use a domestic digital currency in the country.”

The future Iranian cryptocurrency would support and tokenize Iran’s national fiat currency – the rial.

As a response, the US President Donald Trump has stated that "anyone doing business with Iran will NOT be doing business with the United States." Mr. Rouhani has then reportedly stated that the US was using “psychological warfare” to intimidate Iran.

Considering the restrictive nature of internationally imposed economic and political sanctions on Iran, the nation has been blocked from conducting trade or business with most of the countries. Consequently, the economy of Iran has suffered.

Therefore, the Iranian state-backed cryptocurrency aims to “facilitate the transfer of money” to “anywhere in the world.”

Turkey Bitcoin Adoption Rises

In order to adopt a strategy that seems to be similar to that of other nations that suffer from the US-led sanctions, Iran is planning to combat those with Blockchain-backed payment and transaction systems. In addition, since Trump administration moved to sanction the US dollars, Iran is now reportedly restricted from transacting in USD.

Some other nations that are affected by the US economic policies allegedly include Turkey. Country’s national currency, Turkish lira, has dropped to record lows against the greenback. Some of the online reports state that Turkey’s residents have turned to cryptocurrency market, now increasingly adopting the Blockchain and Bitcoin use cases.

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