Iranian National Cryptocurrency Against US Sanctions

According to the recent announcements Iran is going to launch its own “local” state cryptocurrency.  The authorities think local cryptocurrency will help the country bypass the strict economic sanctions imposed by the President of the United States Donald Trump. The sanctions included a complete ban on US citizens and companies to conduct business in Iran or participate in joint ventures with Iranian companies which makes the economic effect of the sanctions affect the prospects of the Iranian economy.

As per Iranian news outlet Press TV, national authorities designed “a plan to create a local cryptocurrency.” The main purpose of the government to make cryptocurrency function both as a national and an international currency for universal trade and commercial activity so that to escape western financial sanctions.

Besides the Iranian government is also considering to embade blockchain technology within the national banking system over the next three months where the tokenized cryptocurrency will promote financial operations among trading  banks joined together in a decentralized ledger.

Alireza Daliri, the deputy for management and investment affairs at Iran’s Directorate for Scientific and Technological Affairs of the Presidential Office especially showed that the plan has been created in cooperation with the Central Bank of Iran (CBI). The digital form of currency  will also be utilized to resolve interbanking agreements in financial operations between banks within the country together with its designed use for cross-border transactions without any confidence on the SWIFT-led global financial system.