Iran is set to achieve its goal of launching its national Cryptocurrency; a Rial backed stablecoin on the 29th of January. This is contained in a recent report of Al Jazeera.
The Goal For Crypto Adoption By Iran
The adoption of a national cryptocurrency has been a major goal of some countries in the world in recent time. These countries interest in cryptocurrency is driven by the desire to use it as a tool to wade off the impact of international sanctions on their economy, especially from the United States of America.
One of the countries in pursuit of this goal is Iran. As reported by Al Jazeera of recent the country is set to actualise its goal of launching its national Cryptocurrency. This is expected to be announced on the 29th of January during the electronic banking and payment systems conference in Tehran, a yearly conference. The theme of this year’s conference is “blockchain revolution.”
The crypto project is expected to be filed out in phases. The first phase is as a Rial backed digital token, for facilitating payments between Iranian banks and other Iranian institutions that are active in the crypto space. Afterwards, the project will proceed to the stage of use as an instrument for the Iranian public to pay for local goods and services.
The cryptocurrency is expected to be launched on a private blockchain but based on Ethereum, though this still not yet well explicitly revealed.
Cryptocurrency, A Tool For Fighting Economic Sanctions and Poor Economy
In recent time, there has been the adoption of cryptocurrency by citizens of various countries especially in Africa, and countries affected by economic sanctions. The major undertone of crypto adoption has been driven by the goal of evading the effect of hyperinflation on the economy of most countries.
Also, countries have been aiming at its adoption as a national project to evade the economic sanctions of the United States. The ousted president of Venezuela adopted the first of its kind, Nicholas Maduro, purposely to revamp the economy and fight the influence of U.S. sanctions. Though the crypto can be described as a disaster, the launch laid precedence for other countries interested in such a project.
A similar goal was reported to be underway by Turkey last year after the effect of U.S. sanction hit its economy. The economy of Iran was also hit in November when its banks were prohibited from the use of SWIFT.