Country Of Iran Might Be First To Use Bitcoin As Currency Due To US Bank Account Blocks
Ever since the U.S withdrew from the 2015 Nuclear Agreement, an agreement in which Iran swore to reduce nuclear activities altogether, countries have been watchful of Iran’s actions.
According to Reuter’s reporting, U.S ambassador, Richard Grenell expressed that the government is questioning Iran, as the country recently withdrew 300 million euros, which were stored in German banks. The concerned ambassador also added that Germany should take the necessary steps to halt Iran’s plans, which still remain unclear.
Ever since the 2015 Nuclear Agreement ended between Iran and the U.S, the former has been struggling, and has been turning to Bitcoin. Why Bitcoin? This is largely due to the fact that cryptocurrencies are known for their decentralized, borderless, private and anonymous type. In particular, conducting a transaction with crypto is inclusive of everyone, which is favorable for Iran.
According to Juan Villaverde, who’s known for his analyst role at Weiss Cryptocurrency Ratings, cryptocurrencies are today what the U.S currency or gold were yesterday, implying that any instability present would force consumers to find something to put their money in to maintain its value.
Villaverde explicitly shared that,
“Today many are moving into cryptocurriences, where their money sits on a global distributed ledger that no central bank or government can touch.”
While Bitcoin has its perks and could be a feasible option for Iran, the country supposedly isn’t completely for them to the point where banks were barred from communicating with cryptocurrency exchanges.
Mati Greenspan, Senior Market Analyst at eToro believes cryptocurrencies can be transformative, especially for a country like Iran.
He added that,
“[A crackdown in Iran] would create a secondary market for crypto assets within the economy, which […] would have a very high markup compared to the asset’s price elsewhere in the world.”
In order words, opening doors to an alternative market, especially the likes of cryptos can help Iran conduct peer-to-peer transactions without having to undergo extraneous procedures.
It has been also pointed out that Iranian officials might be reconsidering cryptocurrencies and might revisit its uses. This decision supposedly sparked as an alternative to traditional banking systems such as SWIFT. In addition, this effort, as previously mentioned, may help to skip “international sanctions” altogether.
As for rumors regarding an Iranian crypto, it does not appear to happen anytime soon, as a national crypto will be faced with border issues. This leads to the intervention of other countries, that is, to either accept or reject the idea. With U.S’ current relationship with Iran, and their fear of what the latter might do next, it does not seem reasonable to assume that Iran will get the necessary support.