Iran to Deploy State-Backed Crypto-Rial Soon After Being Booted from SWIFT Payment System
SWIFT, which is regarded as a universal financial platform has officially ejected the Central Bank of Iran from its system as a result of the sanctions placed by the United States of America. The implication of this sanction against Iran will create a huge challenge for Iran to execute clean international transactions.
To solve this problem, the Iranian government has decided on an alternative. They actually chose to facilitate the creation of their national cryptocurrency, called Crypto-Rial.
According to news from local sources, a privately owned company known as Informatics Services Corporation (ISC) which collaborated with the Central Bank of Iran, has already created the local cryptocurrency, Crypto-Rial. All that’s left now is the deployment of the token on the blockchain.
The Chief Executive Officer of ISC, Seyyed Abotaled Najafi said that with the new digital currency, SWIFT and other forms of settlement services will no longer be needed in the country.
Nevertheless, Seyyed made it clear that plans for the new state-backed digital currency was earlier conceived and established even before the decision to avoid sanctions came up, although some experts debunk this claim.
Seyyed further claims that the reason for creating the Crypto-Rial has a lot to do with tapping from the potentials of Blockchain technology as well financial systems that work with and accept cryptocurrency in retail and institutional levels. The crypto when launched will be at par with Iran’s national approved fiat currency.
A news report from NewsBTC said that Iran will soon begin to give out the Crypto-Rial for mass use in all commercial banks. The benefit of this is that this will allow them to make use of the tokens as a recognizable transactional instrument for payments and bank clearance.
Kindly note that this new state-backed cryptocurrency will not affect the value of international transaction agreements with the Rial. What this simply means is that Iran’s national currency will always be recognized as its physical dollar reserves and this would only change when the new digital currency called the Crypto-Rial gets international recognition.
While the state approved Cryptocurrencies have been involved in international circles, especially when it has to do with the economy and blockchain technology, nothing serious has been done to develop them or establish a supervisory or governing body that will greatly assist them by most industrialized countries of the world.
Yet, Iran is not the only country that has moved forward with the establishment of a national, indigenous cryptocurrency. It is on record that the Venezuela’s Petro has been attracted globally since the time it was established early in the year. With these tokens, most financial experts claim that these countries will be better able to avoid international sanctions placed on them by the global community –the US and UK in particular.
An adviser to Vladimir Putin made a declaration at the beginning of this year that a Crypto-Ruble could be established and then used a means to evade any perceived ban. Whether this will happen in Russia still remains to be seen.