Tuesday, 25 January 2022

Iran Plans National Cryptocurrency as New US Sanctions

TEHRAN: Iran may soon issue its own cryptocurrency as a way to bypass new economic sanctions enacted by U.S. President Donald Trump.

A plan to develop an “indigenous” cryptocurrency is currently on the agenda of the government’s Science and Technology Department, according to Iran’s official news outlet PressTV. Alireza Daliri, the department’s deputy head in charge of investment affairs, said on Wednesday that the project is ongoing in cooperation with the Central Bank of Iran.

“We are trying to prepare the grounds to use a domestic digital currency in the country,” Daliri was quoted as saying in the report.

The cryptocurrency would back and tokenize Iran’s national fiat currency, the rial, in order to facilitate domestic and cross-border transactions ahead of the U.S. sanctions, which go into effect next month.

The U.S. announced its withdrawal from a 2015 nuclear agreement with Iran in May alongside the reactivation of economic sanctions that will restrict Iran’s access to U.S. dollars starting from Aug. 6.

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