No More Ban on Bitcoin, A Silver Lining for Crypto-Rial Release in Iran

Last Modified:12 May 2020 11:59:02
No More Ban on Bitcoin, A Silver Lining for Crypto-Rial Release in Iran

Following the attempts to circumvent the U.S. second tranche of sanctions imposed by the U.S president, Donald Trump, Iran took the first steps to lift the ban on cryptocurrency, e.g., Bitcoin, to set the stage for more convenient international financial transactions and releasing its own sovereign cryptocurrency; albeit, it entails negotiations with foreign partners which has recently been launched through some conferences and summits.

The preliminary measure taken by Iran’s central bank include issuing the primary draft of cryptocurrency laws denoting no more bans on Bitcoin, digital token, ICOs, etc.; although there will be some limitations in their domestic use, they can be safely applied for the business by the people. It goes without saying that there will be some legal prohibitions for the financial institutions in working with them; since it would be risky for maintaining Rial monopoly.

The aforementioned legislation will include other related technologies such as crypto-wallet, and mining too. To make use of cross-border benefits of cryptocurrencies to improve Iran’s poor economy, eight foreign countries including Switzerland, South Africa, France, England, Russia, Austria, Germany, and Bosnia have taken part to talk about future trades with Iran through this newly-confirmed cryptocurrency.

Following the recent economic dilemma Iran has confronted; that is, SWIFT suspension, starting international trades based on cryptocurrency seems a necessity to help Iran cope with the situation with the lowest risk possible.

What has been embarked in Iran is preceded with a similar one carried out in Russia by creating national crypto to solve the problems related to SWIFT suspension. The similar financial approach taken by two neighbor countries resulted in signing a trilateral agreement between Iran, Russia, and Armenia with the target of employing Blockchain too.

addition to legalizing cryptocurrency and Blockchain technology in Iran, its other promising innovation is to unveil a state-backed cryptocurrency, Crypto-Rial, at the Annual Conference of Electronic Banking and Payment Systems held January 29, 2019. For the time being the Iranian authorities’ supposition for crypto-Rial is its constrained application as a payment tool between the banks and cryptocurrency-funded institutes.