According to reports, Iran has been struggling to find a way to bypass the upcoming US sanctions, and they seem to have finally found a way. Nothing is official yet, but it is believed that Iran might choose to turn to cryptos in order to circumvent the sanctions and overcome the rule of the US dollar.
Evading the Sanctions
After being forced to find a way to evade a new wave of US sanctions, Iran has started considering doing so by employing cryptos, according to one of the country’s lawmakers. The official stated that nothing is yet official, but that the parliament of the Islamic Republic will soon discuss and examine the problem.
Additionally, parliamentary Economic Commission’s chairman, Mohammad Reza Pour-Ebrahimi, said that the use of cryptos might help even further. According to him, the dollar hegemony that has been present in the worldwide trade for a long while now can also be overcome by using digital currencies.
He also stated that one of the Iranian legislature’s biggest priorities right now is to explore different methods of bypassing the sanctions. He even mentioned cash treaties that a lot of big countries, like Brazil, China, or Russia have considered in the past.
Recently, Washington has decided to pull out of the long-expected nuclear deal, which has caused a lot of tension between the countries. Additionally, the US has threatened Teheran with a lot harsher steps. All of this has caused the rial, country’s national currency, to drop in value for as much as half the price. Obviously, the promise of the new sanctions was the last drop, and Iran has decided to find another way.
Iran’s History with Bitcoin (BTC)
This is not the first time that Iran is coming into contact with cryptos since the country already has somewhat of a history with Bitcoin (BTC). Actually, they have a rather ambiguous stance when it comes to cryptos. It all started when Iran noticed an increase in P2P trades involving Bitcoin and rial.
The country’s citizens started turning to cryptos in order to avoid inflation, and safeguard their money from financial uncertainty. This was also a period when entire phone calls were created in order to make cryptos accepted more widely.
Such calls were also followed by various statements that claimed that cryptos are dangerous, unreliable and that they should not be used. Additional reviews stated that CBI (Central Lender of Iran) is trying to find methods to stop the use of cryptos. However, this was not to be, and new reports about Iran considering the launch of its own crypto started to appear. Accompanying the new coin, Iran would also try to bring regulations for it, as well as do all in its power to make it decentralized, and Bitcoin-like.
The CBI decided to fight this decision, and they issued a ban on dealing with cryptos, that all of the regional financial institutions and banks had to respect. At the same time, discussions regarding the regulations were still ongoing. Various criminal activities like terrorism funding, money laundering and alike, were seen as the biggest issue that regulators needed to tackle.
Then, in May of this year, it was uncovered that Iranians managed to send over $2.5 billion abroad, in order to get cryptos. During all of those discussions, however, the country already managed to create an experimental local coin. The legal framework that will support the coin has yet to be created, but at least it would seem that the country is serious about turning to cryptos and that they are actually creating proper regulations.