Bitcoin, the flagship cryptocurrency, has recently hit $35,000 in Iran, shortly after the country’s government revealed it sees the crypto mining industry as a legitimate one, and is set to announce a definitive stance on the nascent industry towards the end of the month.
According to CryptoCompare data, the development saw bitcoin hit a high of 1,504,000,000 IRR ($35,600) on local exchanges, before its price dropped to about 890,000,000 IRR ($21,100) at press time.
As CryptoGlobe covered, Iran’s Supreme Council of Cyberspace announced the decision by noting, per IBENA, mining cryptocurrencies like bitcoin “has been accepted as an industry in the government” although the “final policy for legislating it hasn’t been decided yet.”
Per Abolhassan Firouzabadi, secretary at the organization, the National Cyberspace Center has been working with the country’s central bank o managing cryptocurrency-related activity. The Iranian government, according to reports, noted its central bank will serve as a “decision-making authority” when it comes to crypto-related policies.
The development comes at a time in which bitcoin has been seeing its price plummet against the US dollar. The cryptocurrency, as covered, saw its price plunge to $6,900 yesterday after losing over $400 in 90 minutes. The drop is believed to be related to a mysterious whale moving over $100 million to crypto exchanges.
The flagship cryptocurrency then plunged for a second time in 24 hours, and is now trading at $6,450. Most other altcoins followed BTC’s price as ether, the second-largest cryptocurrency by market cap, is now trading at $229. Curiously, some cryptocurrency exchanges in Iran have seen ETH’s price hit a $900 high.
Dealing With Sanctions
Most cryptocurrencies are now likely trading at a premium in the country as it’s fiat currency, the rial, is in freefall after US President Donald Trump imposed sanctions against it. Trump’s administration has, in fact, forced some of its European partners to stop dealing with Iran, a move that saw the rial hit a record low against the dollar.
To combat these sanctions Iran has been exploring its own national cryptocurrency. The project, which the government touts will “facilitate the transfer of money” to “anywhere in the world” is now reportedly complete.
Other nations hit with international sanctions are also looking at cryptocurrencies as solution. Venezuela’s bolivar, for example, lost over 99% of its value this year, and in an attempt to salvage the situation the government launched an oil-backed cryptocurrency, the Petro, a cryptocurrency’s there’s “no evidence” of.
Turkey, which saw its fiat currency the lira plummet to record lows this year, also saw residents increasingly adopt cryptocurrencies after losing confidence in the nation’s currency and in its traditional banking system.