The Iranian government is considering a new way to increase its revenue through the use of its national cryptocurrency, or rial. While there is no concrete date for its implementation, information published in the press suggests that the country intends to use cryptocurrency in the near future. A new digital currency may also help the government combat a decline in oil revenues. The next step is to develop a system that will allow local businesses to transact with foreign partners.
In the past, investors rushed to the US dollar or gold to get their money. Now, many people are turning to cryptocurrencies, which sit on a global distributed ledger that is not accessible to the central bank or government. Furthermore, a bank’s balances are only for show, and if the government freezes your account, you don’t lose your money. As Iran’s economy struggles, bitcoin may be the best alternative to the rial. Bitcoin was also recently reported to have been mined inside a mosque in June 2019.
But despite the legal risks associated with cryptocurrencies, Iran has not banned them. Instead, the Iranian government has warned citizens to accept the risks associated with the cryptocurrency trade. Its attorney, Babagol, handles cases related to mining, and has even traveled to Pakistan to represent a client who was accused of stealing electricity from the neighboring country. And while the Iranian government isn’t threatening its citizens, it doesn’t seem to be ready for cryptocurrency use.
While the United States is concerned that an Iranian national cryptocurrency could disrupt the country’s economy, the country remains hopeful. Despite US sanctions, the country’s central bank is working with other institutions to control the digital currencies and ensure that they don’t fall under the jurisdiction of foreign authorities. A new central bank in Iran may be just the thing the country needs to get back on its feet and move towards a digital currency economy.
While the government’s stance is far from encouraging the use of cryptocurrencies, it has made it possible for its citizens to make money by selling digital currencies. The government has banned the trading of digital currencies, but this hasn’t stopped Iranians from mining their own cryptocurrency. The government has also banned cryptocurrency-mining at currency exchange bureaux. Although Iran has a ban on cryptocurrency-based transactions, the thriving black market has enabled Iranians to sell and buy the digital currency.
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While Iran’s government is not actively trying to snuff out the crypto industry, it has recognized bitcoin mining as legitimate and risking suffocating the industry with too much regulation. The central bank has also endorsed a national digital currency for the country. This makes it difficult to say for certain whether or not the government has the intentions of making such a national currency. So, for now, Iran has a long way to go before it is able to regulate cryptocurrency.
