While giving a statement about this latest initiative of Iranian cryptocurrency, Daliri also clarified that the central bank was working with “domestic knowledge-based companies” to develop the domestic digital currency.
The U.S. announced its withdrawal from a 2015 nuclear agreement with Iran in May. President Donald Trump also announced the reactivation of economic sanctions on Iran starting from Aug 6.
What do the sanctions mean?
The sanctions majorly mean that Iran will be restricted from buying the US dollars. But, there’s also expected to be some limitations over purchases of crude oil from the country and investments into its oil sector.
The United States under Trump’s rule, announced several sanctions on various other countries too that are probable to take place later this year. And Iran, just like many other countries, is thinking of a spectrum of ways to overcome economic consequences of the US sanctions.
According to Iran’s Press TV, the Iranian Directorate for Scientific and Technological Affairs of the Presidential Office has already planned a way to bypass the US sanctions. Reportedly, the plan is to create its own national cryptocurrency. The Iranian cryptocurrency will play the role of both domestic currency as well as an international settlement token for International Trade and Exchanges.
“We are trying to prepare the grounds to use a domestic digital currency in the country. This currency would facilitate the transfer of money (to and from) anywhere in the world. Besides, it can help us at the time of sanctions”, said Alireza Daliri – the Directorate’s deputy for management and investment affairs.
According to Iranian media, the government is also considering the integration of blockchain technology within the domestic banking system. So that the Iranian cryptocurrency can then make financial transactions among commercial banks easier and smoother.
Even so, Iranian cryptocurrency is not the only example of a country planning to launch its own crypto. Among other countries building their own National Digital Currencies stand Russia, Iceland, and Venezuela.
Interestingly enough, Iran also isn’t the only country to resort to cryptocurrencies as a sanctions-bypassing policy. Venezuela earlier this year launched an oil-backed “PETRO” cryptocurrency to counter U.S. sanctions. The U.S., however, responded by banning the use of Petro in America.
