As Trump Turns Up Sanctions, Iranians Ramp Up the LocalBitcoins P2P Crypto Trading Activity
As the government of the United States continues to impose sanctions on Iran, the people of the country have decided to use Bitcoin in order to escape the international sanctions.
This week, the president of the U. S. Donald Trump has issued a new executive order which will forbid the purchase of Iranian steel, iron and aluminum. According to him, this will help to curb the country’s effort of creating a nuclear weapon.
Iran was already being sanctioned by the U. S. before ever since Trump was elected. The situation does not seem to be getting better anytime soon as the president of the country, Hassan Rouhani, disagrees with the nuclear deal and the American president continue to impose more and more sanctions.
There is a huge political pressure made by the U. S. to exclude Iran from the global trading system and it seemed to be working. However, people in the country are aware that they can simply use BTC in order to circumvent some of these issues.
The official statement from the U. S. government is that the country is defending its own territory by imposing the sanctions. According to them, the Iranian regime is struggling to find funding to continue its “campaign of terror” because of the problems in the economy caused by the U. S.
Bitcoin Volumes Are Rising In Iran
As a result of the sanctions, the national fiat currency, the Iranian rial, is very destabilized. At the moment, 156,500 Iranian rials are worth a single dollar. The local fiat lost its value by 10% since last week.
LocalBitcoins, a decentralized P2P platform to trade BTC, has surged 51% in usage in the last two weeks. According to data compiled by Coin.dance, the numbers keep rising as the sanctions are imposed upon the country.
As many Iranians are worried about the inflation and the value of their local currencies, they are starting to hold some crypto. The economy is not in a good spot right now and it may see new lows. This can be used partly to make interested in adopting cryptos.
Al Jazeera News reported that many Iranians are converting their money to BTC in order to store their value. This way, they can be really in control of their money while they are being attacked by the most powerful nation in the world.
As the U. S. attacks on Iranian economy happened, the Central Bank of Iran has decided to lift the ban that cryptos had. This was obviously because people would start to use it exactly because they had so much trouble caused by the sanctions.