The Islamic state of Iran is in the crypto news today for its apparent plans to announce a state-backed cryptocurrency. The reason behind this is obvious – Iran suffers from a lot of US-imposed sanctions that cripple its economy. In that manner, forming an altcoin would stabilize the economy and evade the US sanctions in a great manner.
The idea was first born in the financial institutions, which saw it as an option to conduct transactions and relate with the rest of the world. Many believe that if such cryptocurrency is introduced, it will help and abate some of the effects of the sanctions.
On January 29th this year, the city of Teheran (Iran) hosts its annual Electronic Banking and Payment Systems Conference – which is where the government is expected to make the announcement concerning the new digital asset.
Meanwhile, for those who don’t know, the Donald Trump administration brought a lot of strict sanctions on Iran back in the middle of 2018 mostly because of the “malign activities” carried out by the state. By November, the Belgian-based financial messaging system SWIFT was banned from the country along with many Iranian users, left without the ability to do foreign trade and a wide array of international transactions.
According to the news outlet Al Jazeera and its recent reports, the state-backed cryptocurrency will be rolled out in two phases – as a crypto Rial which will be used for making payments (1st phase) and in the form of public access for wider use (2nd phase) which is expected to come at a later phase.
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