Iran Embraces Cryptocurrency Mining Amid Country’s Sanctions Crisis
Cryptocurrency has always presented itself to some countries as a way to avoid tough economic conditions. Part of this is without a doubt a result of the initial philosophies which helped to found cryptos like Bitcoin. These digital assets often provide constituents with a way to avoid interacting with a financial system which they perceive to be unjust. As a consequence, many cryptocurrencies have drawn both the interest of individuals and the regulatory targeting of governments.
But in 2017 and 2018, this paradigm has begun to shift. Governments all over the world have seen an increased institutional interest in the public adoption of cryptocurrency technology to help to resolve issues that they perceive in their existing financial and economic structures. In particular, the increased availability of more centralized blockchain technologies has contributed to the hike in governmental interest in the use of new distribution and financial systems, and even cryptocurrencies themselves.
It started, in many ways, with Venezuela. As the country faced its most significant financial crisis in recent history, with inflation rates climbing to a projected 1,000,000% this year alone, they began to look to alternative financial opportunities in order to avoid facing all-out destruction. They found a potential solution in the adoption of the first nationally-recognized official cryptocurrency, deciding to make DASH an official currency earlier this year.
Now, Iran is looking to cryptocurrency markets in order to avoid the financial pressure being levied on them by a barrage of dangerous sanctions by the United States and its allies. Iran has already created its own cryptocurrency, based on the value of oil in their oil mining sector and referred to as the Petro. And according to government spokespeople, Iran is now moving to recognize the mining industry within their Central Bank of Iran, and the country is even going to begin its own cryptocurrency mining operations.
Mining To Begin Soon
Iran is taking no time when it comes to putting the new financial concept into practice within their borders. The Secretary of the Iran Supreme Council of Cyberspace spoke out on the move in an interview, saying that they plan to use the cryptocurrency market to smooth trade between oil company Tehran and the partners inside and outside of the country.
The Central Bank of Iran says that it will publish a policy framework on the cryptocurrency mining industry within the next few weeks, setting the groundwork for a substantive governmental integration of mining and cryptocurrency into its existing infrastructure.
Cryptocurrencies And Sanctions
The recent flurry of policy changes in Iran regarding cryptocurrencies is indubitably and directly linked to the recent sanctions being imposed by Trump’s administration in the United Stets. The massive oil-producing nation has been facing pressure from the US because of a variety of policy-based disagreements.
Despite their efforts to use the currency to avoid having to pay the price of dealing in US or Iran currency, studies so far have shown that very few people have backed the new cryptocurrency. Only time will tell the extent to which the experimental Iranian economic strategies will help to pull the country out of financial crisis.