The Islamic Republic of Iran is weighing her options, and one of the glittering on the table is the use of cryptocurrency as a shield against the upcoming sanctions that have been mounting up since the start of the Trump’s administration. The option may soon become a reality as the Iranian parliament will soon discuss this due to the success of cryptocurrencies in other nations of the world and will also boycott the use of the American dollar as the means of exchange in international trade and market.
GREAT OPTION IN A CRITICAL STAGE
Muhammed Reza Par Ebrahimi, chairman of the parliamentary economic commission in Iran, revealed that the country is considering using cryptocurrencies to avoid the effect of the U.S sanctions, the Iranian official also disclosed to journalists that cryptocurrencies could help reduce the dominance of the American dollars on the international market. The issue will be tabled at the parliament, among other issues, such as the money treaties to avoid the impact of the sanctions as Iranian Rial has lost half of its value in the last few months and a new round of sanctions will be implemented against the country in November.
Though, the citizens themselves have long embraced the use of cryptocurrencies to protect themselves against the dwindling economy, which has led to rising inflations in the country. Evidence can be seen during the recent protest in the nation against the socioeconomic hardship facing the country, where analysts recorded an increase in peer-to-peer trade between the Rial and Bitcoin.
This realization energized the people, urging the country to adopt cryptocurrencies. Recently, a report surfaced that the country is trying to create its digital currency and planning on regulating the already established decentralized cryptocurrencies like Bitcoin. Though the statement from the Iranian authorities countered the first, the new statement from Iran states the uncertainties surrounding the use of digital currencies, while the central bank of Iran says that the use of crypto is not allowed in the country.
ONE BAN TOO MANY
Iran was hit by a series of bans by the United States government due to its activities in the middle east and the accumulation of weaponized uranium that can be used to produce a weapon of mass destruction. But the effort was reduced by the Obama administration when Iran convinced America that it’s not for weapons but as a source of energy for the country. The present leader Donald Trump tore the agreement and placed another set of sanctions against them.
The hardship forced the citizens to embrace cryptos in April; the CBI then directed all local bank not to deal with crypto while they are trying to regulate it.