Iran on the Verge of National Cryptocurrency to Avoid US Sanctions

Omar Faridi
  • Iran may bypass US-led political and economic sanctions using its own cryptocurrency.
  • The country has developed a blockchain-based encrypted key to help settle international transactions.

Iran is reportedly aiming to follow through on its plan to launch its own cryptocurrency.as officials in Iran’s capital city Tehran revealed a national digital currency could be used to circumvent US-led economic sanctions.

The country’s Directorate for Scientific and Technological Affairs of the Presidential Office had been working on introducing a state-backed cryptocurrency for the past few months, local news outlet Press TV reports.

Alireza Daliri, deputy for management and investment affairs at the directorate, was quoted as saying that there are various local companies capable of developing a cryptocurrency. Per his words, Iran is working on eliminating potential design flaws or programming bugs in its cryptocurrency.

He also revealed that the country’s local IT firms were working closely with the Central Bank of Iran (CBI) to develop the government-backed digital currency.

Commenting on Iran’s cryptocurrency plans, Daliri stated:

We are trying to prepare the grounds to use a domestic digital currency in the country. This currency would facilitate the transfer of money anywhere in the world. Besides, it can help us at the time of sanctions.

Alireza Daliri

It appears Iran has also been focusing on researching blockchain technology.The country recently created a blockchain-based encrypted key, with reports suggesting it will be used by the country’s banking sector in the coming months, with the potential to be used in transactions involving the nation’s cryptocurrency.

US-Led Sanctions

Notably, US president Donald Trump signed an executive order in May that aimed to cancel America’s 2015 nuclear deal with Iran. Under former president Barack Obama, one of the terms of this agreement had been to not renew internationally imposed political and economic sanctions on Iran. Moreover, president Trump stated that economic restrictions on Iran will now be enforced “at the highest level.”

Reportedly, the updated sanctions on Iran will become effective next month and will include prohibiting the country from acquiring and transacting in USD. It’ll also deal with restrictions placed on its crude oil exports from November on.

Interestingly, Iran’s recent announcement regarding its crypto plans comes just a few weeks after reports revealed the country was trying to restrict its citizens from using digital currencies.