Iran Mulls ‘Indigenous’ Cryptocurrency Ahead of US Sanctions

Iran Mulls ‘Indigenous’ Cryptocurrency Ahead of US Sanctions

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July 26, 2018 by aliciahussain
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  The Iranian government is reportedly looking to issue its own cryptocurrency as a way to bypass new economic sanctions enacted by U.S. President Donald Trump. The country’s official news outlet PressTV reported that the government’s Science and Technology Department has added the development of an “indigenous” cryptocurrency to its agenda. Alireza Daliri, the department’s
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The Iranian government is reportedly looking to issue its own cryptocurrency as a way to bypass new economic sanctions enacted by U.S. President Donald Trump.

The country’s official news outlet PressTV reported that the government’s Science and Technology Department has added the development of an “indigenous” cryptocurrency to its agenda. Alireza Daliri, the department’s deputy head in charge of investment affairs, confirmed on Wednesday that the project is already underway in cooperation with the Central Bank of Iran.

“We are trying to prepare the grounds to use a domestic digital currency in the country,” Daliri was quoted as saying in the report.

The cryptocurrency would back and tokenize Iran’s national fiat currency, the rial, in order to facilitate domestic and cross-border transactions ahead of the U.S. sanctions, which go into effect next month.

The U.S. announced its withdrawal from a 2015 nuclear agreement with Iran in May alongside the reactivation of economic sanctions that will restrict Iran’s access to U.S. dollars starting from Aug. 6.

Daliri said his department aims to integrate blockchain technology with the country’s central bank over the next three months, rolling out a cryptocurrency for general implementation across domestic commercial banks.

The announcement aligns with the Iranian government’s ongoing support for developing cryptocurrency and blockchain technology.

According to the Science and Technology Department’s website, Daliri announced said at a meeting early this month that he will support “the path of the creation of digital currency in the country,” adding:

“[O]ur goal is to guarantee the success of those entering this field and conclude contracts in this field.”

In April, Daliri also doubled down on a commitment to launch a “mutual cryptocurrency” that could facilitate financial payments between domestic and foreign businesses.

This is not the first time a government is launching a state-backed cryptocurrency to bypass economic sanctions. Earlier this year, Venezuela launched its own oil-backed “petro” cryptocurrency to circumvent U.S. sanctions. While the country’s president Nicolas Maduro has claimed successes for the token, the Trump administration has also issued an executive order for additional sanctions against the petro.

 


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