Iran is Contemplating Cryptocurrency Use for Avoiding US Sanctions
Iran Is Considering To Use Cryptocurrencies To Help Evade The US Sanctions
Iran might be employing the crypto coins as part of its effort in circumventing the current sanctions that are coming from the US. This is according to a high ranking lawmaker who further said the issue at hand would be discussed further at parliament very soon. He also believes that the incorporation of digital money will significantly help in overcoming the hegemony that exists in the US dollar.
The Teheran Mulls Will Evade The US Sanctions With The Use Of Crypto Coins
The Crypto coin has been considered to be one of the important mechanisms Iran will be using when evading the current sanctions put in place by the US; this is according to an interview conducted with a senior lawmaker of Iran.
The current chairman of the parliamentary Economic Commission, Mohammad Reza has also noted that with the use of digital currencies in the country it would greatly help in getting rid of the current dollar hegemony that is taking place in international trade.
He further said that parliament will further review this matter, this is according to the Mizan News Agency. Pour-Ebrahimi also noted that one of the priorities of the current legislature in Iran, with the current volatile market we are experiencing is to explore further the current issue that exists in money treaties, this could be another mechanism that the country could use to evade the sanctions.
Currently, multiple countries like Brazil, China, and even Russia are already turning to the use of multinational or mutual money treaties which has been able to facilitate the trade transactions that take place.
Ever since Washington pulled out from the current nuclear deal and went ahead to threaten Teheran in putting harsher measures to the national currency of Iran has increased tension with the US. As a result, the national currency went ahead and lost about half of its value in just the last seven months. In November we should expect to see the new set of economic sections taking place, and with this has lead the Iranian authorities to find a solution that can circumvent it.
The Complicated Relationship Between Iran And The Bitcoin
The Islamic Republic has been having an ambiguous attitude towards the crypto coins. But with the current economic woes in the county has persuaded most of the citizens to turn to the crypto-coin, especially bitcoin. This is to ensure they are protecting themselves and also their money from the increasing inflation taking place and the overall uncertainty in the economy.
The beginning of this year the country was shaken by the widespread protests that arose over the socio-economic situation. As a result, during this period the nation sow an increase in the peer to peer trade that was taking place between bitcoin (BTC) and rial (IRR). During this period is when calls were made for a broader acceptance of the crypto market.
From the happenings, a report was released later stating that Iran was actually considering issuing their own crypto and even adopting the appropriate regulation for the already established decentralized coins like the bitcoin. But this was followed by various remarks that the coins are not as stable and are unreliable. And other reports also claiming that the CBI, Central Bank of Iran, was actually looking for different ways they could prevent the overall use of the digital currency within the country.
In the month May, despite the clampdown from the CBI, it was revealed that the citizens of Iran have actually sent abroad more than about $2.5 billion to acquire these coins. All because if the raising uncertainty of the economic market.
It also becomes known that the country had also developed an experiment coin while the CBI together with the Information and Communications Ministry continued with their work of creating an appropriate legal framework that could be used n the fintech industry.