How Will Iran Use Crypto Currency To Circumvent American Sanctions?

How Will Iran Use Crypto Currency To Circumvent American Sanctions?

How Will Iran Use Crypto Currency To Circumvent American Sanctions?

Iran is trying to follow in the footsteps adopted by Venezuela in circumventing the sanctions slapped by the United States. For this purpose, the country is developing its own digital currency that will be backed by the State fully. The nation has also confirmed that it will go ahead with its plan of having its own virtual asset. However, it remains to be seen as to how far the country can be successful in dodging the sanctions.

Already In Agenda

Directorate for Scientific and Technological Affairs deputy for management and investment, Alireza Daliri, has disclosed that the plans for having a digital currency are already on its agenda. However, the news of the country trying to develop a state-supported virtual asset has come to the open only now with local news media reporting the developments. The official said that they are creating the necessary grounds so that the cryptocurrency could be used in the domestic circuit in the first place.

Daliri thinks that the virtual currency could enable the transfer of money around the globe, either to or from. At the same time, he believes that it would allow it to manage the sanctions imposed by the United States. The fact that it allows the easy transfer of money is mainly focused on countries exporting its oil and that such nations could pay the bills through the digital currencies. The anonymity feature of the blockchain technology will come in handy to protect its interests.

Though the country has indicated its intention to launch its own cryptocurrency, technical details are not disclosed, cointelegraph reported. At the same time, it is looking for a national encrypted key so that the country’s banking system adopts the virtual assets. Currently, there appear to be some inconsistencies, and a team is working on ironing them out. Therefore, once Iran sorts out issues, there is every possibility of the cryptocurrency hitting the market in the next three months.

There were reports earlier too about the country launching a national virtual currency. That was mainly due to the potential of the sanctions being slapped by the United States. The country was obviously keen to ensure that it takes preemptive steps to curb its impact. There were also increasing calls from different sections towards this. Iran had to suffer the sanctions before also when there was no facility of virtual assets for money transfer.

Volte-Face

Significantly, the country’s adoption of cryptocurrency is nothing but a volte-face from its earlier view. For instance, in April, the country has banned banks from dealing with any of the companies associated with digital currencies. It was also against the leading virtual asset, bitcoin. Therefore, the current action is more to deal with the sanctions rather than encouraging the emerging sector.

Interestingly, Venezuela too faced sanctions from America, and it opted to launch Petro token to dodge it early in the year. Iran is only following its footsteps to meet the challenges. This included a total ban on acquiring the American Greenback from next month.