Iran Plans Its Own State Cryptocurrency

In spite of reports of the Iranian government setting up the ‘infrastructure’ for bitcoin utilization in the nation, Iran’s central bank has refuted claims of identifying bitcoin as a legal currency.

In November, Iran’s minister of Information and Communications Technology (ICT) uncovered the ministry was getting ready to hold onto bitcoin as an answer to bypass economic sanctions that has already separated Iran’s banking framework from worldwide commerce and finance “The ministry of communications and information technology has already conducted a number of research studies as part of efforts to prepare the infrastructure to use Bitcoin inside the country,” ICT minister Amir Hossein Davaee reportedly said at the time.

Iran experienced a banking blackout after worldwide payments rail SWIFT restricted the nation from its network in 2012, a barricade that kept going four years until sanctions on Tehran were lifted by previous US President Obama’s nuclear deal in 2016.

Within weeks, Iran’s High Council of Cyberspace (HCC) expressed its ‘positive’ view on digital currencies, particularly bitcoin, with regulations. We welcome Bitcoin, but we must have regulations for Bitcoin and any other digital currency,” expressed HCC secretary Abolhassan Firouzabadi.

Be that as it may, the nation’s central bank has now apparently poured cold water on any embracive idea toward digital currencies, dismissing past reports of authorities keen on Bitcoin.

As per local news resources Iran Front Page, the Central Bank of Iran says it has never recognized bitcoin or some other digital currency as an official money in the nation. The central bank cautioned investors that “may lose their financial assets”  in crypto-related investments because of market unpredictability.

The central bank was cited as stating:

“The wild fluctuations of the digital currencies along with competitive business activities underway via network marketing and pyramid scheme have made the market of these currencies highly unreliable and risky.”

Further, the central bank is supposedly teaming up with other financial institutions to reportedly build up an instrument to ‘control and prevent’ digital currencies in Iran. Such a move, assuming true, is yet to be confirmed and the central bank has not issued any official declaration in such manner.

What is known, in any case, is Iran’s endeavors to build up a local state digital currency. Yesterday, Iran’s present ICT minister Mohammad-Javad Azari Jahromi publicly uncovered endeavors toward exploring a state digital currency utilizing blockchain technology. The initiative is in a joint effort with the Post Bank of Iran, a state-owned bank situated in Tehran.

در جلسه‌ای که با هیئت مدیره پست بانک در خصوص ارزهای دیجیتال مبتنی بر زنجیره بلوکی داشتم، مقرر شد این بانک اقدامات لازم برای پیاده سازی آزمایشی اولین ارز دیجیتالی کشور را با استفاده از ظرفیت نخبگان کشور به عمل آورد. مدل آزمایشی برای بررسی و تایید به نظام بانکی کشور ارائه خواهد شد.

— MJ Azari Jahromi (@azarijahromi) February 21, 2018

Roughly translated, the message peruses:

“In a meeting with the board of directors of the Post Bank of Iran on digital currency based on blockchain, the necessary measures for the pilot implementation of the country’s first digital currency were set out by using the country’s elite capacity. A pilot model for review and approval will be presented to the banking system of the country.”

Iran’s foray into exploring a state digital currency takes after Venezuela’s own pre-sale launch of the Petro, portrayed as an oil-backed digital currency.


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