Iran accelerates development of a national cryptocurrency after US sanctions

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Immediately after Washington decided to renew the restrictive measures against Iran, which involve the cooperating of the company, has reported that Tehran is accelerating the project to develop a national cryptocurrency. The authorities of the Islamic Republic think that the coin issued by the government can help to circumvent the restrictions imposed by the administration trump.

Despite calls from partners of Iran, such as the EU, Russia and China, Washington has again taken measures to ban the Islamic Republic to purchase US dollars and trade precious metals. The United States urged allies to reduce purchases of Iranian oil, while President trump warned that the sanctions in November can go to the next level.

On Wednesday, a day after the administration of the trump resumed sanctions, a senior Iranian official announced that President Hassan Rouhani has ordered the Central Bank of the country to meet with other authorities to discuss this issue. It is expected that they will assess the progress in the development of digital money Iran at a time when their Fitna currency, the Iranian Rial continues to devalue.

According to Iranian channel, Press TV, reported the Minister of communications and mass communications of Iran, Mohammad Javad Azari Jahromi, which will directly participate in the meeting with the Central Bank of Iran (CBI), scheduled to take place next week.

However, the CBI remains opposed to the idea of using digital currency and believes they are illegal in Iran. However, the Minister hinted that this attitude may soon change, arguing that the mentality of the government of Iran in favor of the cryptocurrency. Speaking to reporters, he said:

The government’s new policy is that digital money is not necessarily threaten the security and can create opportunities for the country.

Changing attitudes towards cryptocurrencies

Last update of plans of Tehran in Cryptoprotected comes after a senior Iranian legislator said in July that Iran could use cryptocurrencies in the framework of its efforts to bypass the upcoming U.S. sanctions.

Cryptocurrencies are one of the main mechanisms that Iran could use to evade the new sanctions and get rid of the dollar dependence, said in an interview with Mizan Mohammad Reza PUR-Ebrahimi, Chairman of the parliamentary economic Commission

The renewal of U.S. sanctions played a role in changing the attitude of the Iranian authorities towards bitcoin as authorities had previously called them unreliable and risky, while CBI was trying to prevent their use. In April the Central Bank issued a statement effectively banning financial institutions to engage in activities related to the cryptocurrency. At the same time, the Ministry of information and communications continued the work on creation of the legal basis for the FINTECH industry, and the CBI was part of that effort.

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