Iran Government Working on National Cryptocurrency

In an effort to tackle international economic sanctions, the country of Iran is planning to release its very own digital currency. Doing so would reportedly allow the country to bypass some of the economic sanctions, and thus bring economy growth.

Reports indicate that the Iranian Directorate for Scientific and Technological Affairs, associated with the Presidential Office, has added plan onto the country’s agenda. The announcement was originally made by the directorate’s deputy for investment and management affairs, Alireza Daliri, who said that numerous domestic IT firms have what it takes to develop a central bank-backed, national cryptocurrency.

At this moment in time, development hasn’t started, but the government has all plans laid out. For instance, the cryptocurrency will be developed via collaboration with Iran’s Central Bank.

According to Alireza, “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,” 

It is important to point out the fact the country has not drafted any law to regulate the creation of a central-bank backed digital currency. However, there is support from the vice-presidency, therefore it is likely that the project will become a reality.

Iran’s decision is similar to that of Venezuela, where President Nicolas Maduro has launched the ‘Petro’, a central-bank backed national cryptocurrency. So far, the Petro Coin is still an incipient state, so it is difficult to presume its future popularity.

Additionally, in a recent report the EU Parliament talked about how national coins would increase competition on the market, while also improving the worldwide financial system.

Based on everything that has been outlined so far, it is likely that in the future, many other countries will attempt to develop their own coins, in an effort to stay ahead of decentralized currencies.