Iran creates its own cryptocurrency to evade sanctions in the United States

Iran creates its own cryptocurrency to evade sanctions in the United States

According to a senior Iranian legislator, soon the Iranian Parliament will discuss the possibility of using cryptocurrency to bypass the coming, more severe US sanctions.

Mohammad Reza PUR-Ebrahimi, President of the economic Commission in Parliament, also noted that digital currencies can help to get rid of the hegemony of the dollar in international trade. Speaking to news Agency “Mizan”, he said that this issue will soon be discussed in Parliament of the Islamic Republic.

PUR-of Ebrahimi also noted that one of the main priorities of the legislature in the current unstable economic situation is the study of the question of monetary contracts as another mechanism for evasion of sanctions:

“Today, many countries, such as Russia, China and Brazil, has appealed to the mutual monetary or multinational agreements that facilitate trade operations”, — he explained.

Amid growing tensions with the United States, national currency, Iran’s currency, the Rial, has lost half its value over the past few months. It is expected that the new economic sanctions that will take effect in November of this year, even more worsen the situation, because the Iranian authorities looking for ways to circumvent them.

Still, the Islamic Republic had an ambivalent attitude towards cryptocurrencies. Economic problems of the country convinced many Iranians to turn to Bitcoin to protect yourself and your money against inflation and economic uncertainty. In the beginning of this year, when the country was shaken by popular protests in connection with the socio-economic situation in Iran is experiencing a record increase in the trade of Bitcoin in a pair of Rial (IRR).

Later there were reports that Iran is considering the creation of its own cryptocurrency, as well as on the adoption of the regulation rules for the existing, decentralized assets, such as Bitcoin. This was followed by the statement that cryptocurrencies are unreliable and risky, and in other reports mentioned that the Central Bank of Iran (CBI) is looking for a way to prevent the use of digital currencies in the country.

In April, the CBI issued a statement effectively banning local banks and other financial institutions to deal with the cryptocurrency, while the debate about how to regulate the space still continues. As causes of such measures were listed the risks of money laundering, terrorist financing and criminal activities.

Despite this, in may the Iranians sent abroad more than $ 2.5 billion for the purchase of cryptocurrencies. At the same time it became known that Iran has developed a pilot local currency and the Central Bank and the Ministry of information and communications continue to create a regulatory framework for the FinTech industry.

News tags
Let's Disqus