November 12, 2018 AtoZ Markets
After Venezuela introduced to Opec their national cryptocurrency Petro, Iran has announced recently their plans of working on their own national crypto, which will help to bypass U. S. sanctions.
The birth of Venezuelan Petro
A year ago, Venezuela announced the launch of the National cryptocurrency, which, according to official representatives will help to overcome the U. S. sanctions, and not a long time this year, the country officially launched the pre-sale of the new digital currency named Petro. It was intended to supplement Venezuela’s Bolivar Fuerte (VEF), and bring “a total success for the welfare of Venezuela”, as President Nicolas Maduro said. According to the latter, the aforementioned crypto raised $735m in its first pre-sale day.
The future of Iran in FinTech
It seems that Iranians decided to follow Venezuela as an example and turn on blockchain technology. As Secretary of the Supreme Council for Cyberspace of Iran Abolhasan Firuzabadi claimed: ”Cryptocurrency mining is an industry that needs to be developed in Iran” as the news portal islam-today.ru states. Mining cryptocurrency, Abolhasan Firuzabadi said, is one of the most important sectors of the virtual currency, which attracts many players of the cryptocurrency system, and therefore in the country in the near future, there will be a platform for legalizing the extraction of cryptocurrency.
After President Trump terminated the United States’ participation in the JCPOA with Iran and reimposed sanctions, Tehran is facing serious problems in the global financial system. the serious drop-down of the Iranian Real (IRR) since the beginning of 2018 caused protest outbreaks in the country among low-income citizens. Many Iranians started to purchase Bitcoin to store their value since then.
Despite the previous discourage on buying digital currency, which spread from Iranian senior officials, the Iranian government decided to give the green light on developing a national cryptocurrency. However, in contrast with Bitcoin which is decentralized, Teheran wants to control their crypto.
Currently, the national crypto, backed by Rial, is in pilot mode. Its name is still unknown but the process of ensuring internal and interbank settlement has already started. The internal cryptocurrency will be used primarily for settlements with local commercial banks and in a direct transfer. After the Central Bank of Iran (CBI) approves the national crypto application, it will be tested by Fintech organizations.
In his turn, Seyyed Abotaleb Najafi- the chief executive officer of the country’s central bank (ISC) stated that the national digital currency“ will employ in a distributed and one-to-one framework” for transferring without the involvement of any institute”. Najafi, in collaboration with CBI, plans to ensure that internal crypto use “across banking system services” to bypass the US sanctions against the rich-in-oil Middle East country.
Such a serious step into the Fintech industry would be one of the most critical decisions for Iran, however, as Brigadier General Gholam Reza Jalali, head of Iran’s Civil Defense Organization points, the step will bring “great opportunities” for the country.
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