Following news that Iran is looking to lift its ban on cryptocurrency due to US-led sanctions that have limited cash flow and international cash transactions in the nation, the Iranian central bank has unveiled plans to launch its own indigenous state supported cryptocurrency.
According to the Iranian news agency Ibena, the Central Bank of Iran has been finalizing details about the “indigenous cryptocurrency,” which will be similar to bitcoin as transactions will be carried out on the blockchain.
The infrastructure will, however, be private, making it impossible for people to mine the indigenous cryptocurrency.
A rial-backed cryptocurrency
The Ibena report states that Iran’s Informatics Services Corporations (ISC), which is affiliated to the country’s central bank, says the national cryptocurrency is:
“Rial-backed and has been designed and developed by Informatics Services Corporations based on Hyper-ledger Fabric Platform technology.”
“The infrastructure is supposed to be as an ecosystem available for Iranian banks and active companies in cryptocurrencies area after being tested and reviewed.”
Following the US sanction on Iran which came into effect on August 6, Iran’s currency, the rial, sank to an all-time low, falling below 100,000 rials to the dollar.
Iran’s burgeoning adoption of cryptocurrencies
News that Iran is to launch its own indigenous cryptocurrency comes as little surprise as the country has been gearing towards the adoption of digital currencies in an aim overcome the issues US sanction have had on Iran’s financial landscape.
Earlier this month, Alireza Daliri, from the technological directorate of the Iranian Presidential Office, told local media that Iran is:
“Trying to prepare the grounds to use a domestic digital currency in the country. This currency would facilitate the transfer of money (to and from) anywhere in the world. Besides, it can help us at the time of sanctions.”
The prospect of Iran implementing a state-backed cryptocurrency was initiated in April this year when concerns were first raised that President Trump would reimpose sanctions on Iran.
Venezuela criticised for indigenous state supported cryptocurrency
Venezuela is currently one of the only countries that has its own indigenous state-backed cryptocurrency. The Venezuela digital currency was launched in February 2018 but has come under scrutiny by President Maduro’s opposition who declare the ‘Petro’ as illegal.
The state-supported cryptocurrency has also been criticized by the US, with the Trump administration preventing anyone in the United States from participating in its use.
Gabrielle Pickard-Whitehead is a freelance journalist and copywriter based in the Peak District, UK. Since 2006, Gabrielle has followed her passion for writing and has sculptured a rewarding career out of her love for the written word. Gabrielle thrives on creating compelling content related to current affairs, politics, financial news and the latest advancements in technology and innovation. Gabrielle is excited about having the chance to write about the constantly-evolving world of crytocurrency and enabling people to learn more about this rapidly-advancing digital asset.