Iran Suggests Gold-Backed Cryptocurrency


Following the US president’s comments on bitcoin, Iran suggests gold-backed cryptocurrency launch, saying it is ready to be unveiled.

The article was updated on 05 February, 2020 by Amicus.

15 July, 2019 | AtoZ Markets  Days have passed since US President Donald Trump called bitcoin “no money”, saying that the US 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. 

Trump “Not A Big Fan of Bitcoin”, But Iran Thinks Another Way

The Central Bank of Iran (CBI) has given permission for the new crypto to launch. As per the local news report, the crypto will mine by a small consortium of private Iranian tech companies. Moreover, it will back by the gold,  held in Iran’s central bank reserve. 

Shahab Javanmardi, CEO of FANAP 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. Also, 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. 

Saeed Zarandi, and Assistant Minister of Industry, Trade, and Supply of Iran said:

The US is the main of the reason for undermining bitcoin activities in the country. The United States, in its turn, accused Iran of using bitcoins to circumvent international sanctions.

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 soon. 

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

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