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Cryptocurrency

Iran suggests gold-backed cryptocurrency

Maya Mandz | Jul. 15, 2019
Iran suggests gold-backed cryptocurrency

July 15, 2019 | AtoZ Markets - Following the U.S. president’s comments on bitcoin, Iran suggests gold-backed cryptocurrency launch, saying it is ready to be unveiled.

Trump “not a big fan of bitcoin”, but Iran thinks another way

Days have passed since US President Donald Trump called bitcoin "no money", saying that U.S. dollar is the most dominant global currency. 

The Iranian authorities, however, believe, that cryptos can help provide a better future for the country’s citizens. 

As the local English daily publication has reported, the Central Bank of Iran (CBI) has given permission for the new crypto to be launched. As per the report, the crypto will be mined by a small consortium of private Iranian tech companies and will be backed by the gold,  held in Iran’s central bank reserve. 

Shahab Javanmardi, CEO of FANAP – an Iranian information and communications technology (ICT) firm has revealed, that “the new crypto's function will be similar to foreign rivals.“ The FANAP official believes, that national crypto could ease the optimal use of Iranian banks’ frozen resources

However, the experts admitted, that Iran’s crypto project could further complicate tensions between the oil-rich country and the United States. 

Controversies are following bitcoin and crypto mining in Iran 

The Iranian authorities seem quite uncertain about their position toward digital assets and of what to do about cryptocurrency.

Notable, that Iran suggests gold-backed cryptocurrency just a few weeks after it outlawed crypto-mining in the country. Mostafa Rajabi Mashhadi, an official from the Iranian Ministry of Energy unveiled that the decision came against the background of the unusual increase in power consumption. In addition, the CBI of Iran banned all private cryptocurrencies and crypto businesses in the country.

Moreover, The FANAP CEO Shahab Javanmardi called on the government to continue fighting the bitcoins in the country. 

It is worth to mention, that Saeed Zarandi, an Assistant Minister of Industry, Trade, and Supply of Iran said, that the US is the main of the reason of undermining bitcoin activities in the country. The United States in its turn accused Iran of using bitcoins to circumvent international sanctions.

Notable, that Iran’s geopolitical rivals, Venezuela and Russia, have been mentioning the national crypto release quite often in the last few months.

President Maduro, for example, against the background of the humanitarian and economic crisis, has ordered to put their oil-backed Petro crypto in circulation in all branches of the Banco de Venezuela. Russia’s Central Bank in its turn, according to the latest report, is also considering possibilities of issuing its own crypto in the near future. 

Will the aforementioned countries succeed in their battle with foreign cryptos and US sanctions by launching their own digital assets? Only time will show. 

Think we missed something? Let us know in the comments section below.



Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.