Iran to Issue National Cryptocurrency to Bypass US Sanctions

The US President Donald Trump has ordered to enact the US sanctions against Iran starting from the 6th of August. In a bid to bypass these sanctions, the Science and Technology Department deputy head Alireza Daliri reveals that “Iran to issue national cryptocurrency. “

26 July, AtoZ Markets Reportedly, Iran is considering the launch of its own cryptocurrency that will be aimed at bypassing new economic sanctions that have been ratified by the US President Donald Trump.

Iran to Issue National Cryptocurrency to Bypass US Sanctions

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. It would aim to facilitate local and cross-border transactions prior to the moment when the US sanctions will be enacted next month. 

The US officials have announced the withdrawal from the 2015 nuclear agreement with Iran back in May. At the same time, the US government has announced the reactivation of economic sanctions that will restrict Iran’s access to US dollars. 

Iran Central Bank Blockchain Integration

Daliri has stated that his department plans to integrate Blockchain technology along with the country’s central bank, with the final result being the cryptocurrency for general implementation across local commercial banks. According to the Science and Technology Department’s website, Daliri has stated that he will back “the path of the creation of digital currency in the country, “explaining:

“[O]ur goal is to guarantee the success of those entering this field and conclude contracts in this field.”

Earlier this April, Daliri has downplayed his commitment to establishing a “mutual cryptocurrency” that would ease the financial payments between local and foreign businesses. 

This step by Iran has followed the similar approach from Venezuela. The latter has launched its own oil-supported “petro” cryptocurrency in order to combat the US sanctions. 

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