In response to a number of economic sanctions imposed on Iran by the United States, the country had announced that it would be considering the production of a native cryptocurrency, designed to help Iranian banks avoid the sanctions imposed by the Trump administration. Since then, The Central Bank of Iran have revealed plans for an ‘indigenous cryptocurrency’, one that has been designed to be backed by Iranian Rials, the Iranian FIAT currency. The currency will be fully integrated with the blockchain and will take a similar format to Bitcoin. As it will be built on a private chain though, the cryptocurrency is not going to be mineable. According to The Independent, Ibena, a news agency which is affiliated with the Central Bank of Iran has said:
"The infrastructure is supposed to be as an ecosystem available for Iranian banks and active companies in cryptocurrencies area after being tested and reviewed."
Furthermore, Iran’s Supreme Leader Seyyed Ali Khamenei has commented earlier in the week, saying that the country needs to take action against its economic problems now before the issue escalates beyond control. Ali Khamenei said:
"With regards to the economy, there is need for full force, large-scale and proficient work. Authorities in charge of economic affairs must work hard day and night to resolve the problems."
Historically, Iran has been somewhat anti-Bitcoin, though it seems in this instance they are seeking some refuge within the blockchain. We need to ask ourselves, is this the correct approach to take? Should cryptocurrencies be used to avoid imposed sanctions?It’s a question that is very difficult to answer. Sanctions are in place for a reason, but at the same time Bitcoin was designed to be anti-establishment. In this instance, cryptocurrency is being used to surpass the rulings of a government, but, is it going to help inspire another government to control its own people?It’s a question that is up for debate somewhere else. For us, the important thing here is that cryptocurrency is being turned to in a time of need, that’s exactly why it was invented in the first place right?ReferencesThe Independent