The world’s third largest oil producer, Iran has finally given green signal to the cryptocurrency mining to cope up with the economic sanction damage. Venezuela’s digital currency, Petro, inspired the initiative. In the coming three weeks, the country is likely to be a part of the crypto world with its digital currency.
In recent developments, cryptocurrency mining in Iran has taken shape in the real-world economy. Consequently, government officials have announced that mining digital currencies will now operate as a full-fledged, officially recognized business within the country.
Central Bank to Roll Out Regulatory Framework
To back up the initiative, Central Bank of Iran is likely to come up with a compressive and detailed framework for the industry. The framework is expected to explain the foreign exchange and monetary policy process for digital currency and will be released in approximately 18 days.
Providing a clearer insight into digital currency, the Secretary of Iran’s Supreme Council of Cyberspace, Abolhassan Firouzabadi, explained in an interview that, ultimately, the implementation of cryptocurrencies in Iran aims to streamline trade between Tehran and its international partners.
The new US sanctions affected the trade at certain levels. He further elucidated that the mining of digital currencies is now a legal activity in the country. As a result of growing interest in digital assets, Iran’s major governmental sectors and agencies—such as the Central Bank of Iran, the Ministry of Communications and Information Technology, the Ministry of Energy, the Ministry of Industry, Mining and Trade, and the Ministry of Economic Affairs and Finance—have now officially permitted the activity.
Will it be beneficial?
Iran is facing a tough time after the launch of US new sanction where the country has decided to cut off all sort of oil dealing from Iran. This is a major setback for Iran as oil trading is the blood of Iran’s economy. The concept of launching oil-backed cryptocurrency in Iran took the inspiration from Petro. Venezuela’s oil-backed digital currency, Petro, is running into trouble because it lacks takers.
