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Iran releases its own cryptocurrency

Iran cryptocurrency

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Iran has unveiled its plans to release its own cryptocurrency to ease payments in the country and to avoid the economic sanctions imposed by the United States.

“The local cryptocurrency” will be under the control of the country and will be supported by the Iranian rial. It will be similar to Bitcoin, but residents of the Islamic Republic will not be able to mine it because its infrastructure will be private.

“The infrastructure is expected to be private and accessible to Iranian banks and active companies in the cryptocurrency field after being tested and reviewed”, says the official statement of the Iranian news agency Ibena, which is part of the country’s central bank.

The monetary institution has so far disregarded Bitcoin and other cryptocurrencies, but was forced to explore new ideas after the withdrawal of the US from the Iranian nuclear program, which restored heavy economic sanctions against Tehran. Iran sees the local cryptocurrency as a solution for cutting off international payment systems, as technology facilitates the transfer of funds around the world.

If the test with banks and financial companies in the country is successful, cryptocurrency may spread to society.

Iranian Supreme Leader Ali Khamenei said the country should do more to solve the problems.

“Considering the economy, we need the full power, large-scale and experienced work. The authorities responsible for economic affairs must work hard day and night to solve the problems”, recommended the Iranian Supreme Leader, Ali Khamenei

The Islamic Republic will will obviously follow the example of the troubled Venezuela, which has recently announced radical economic reforms and has released its own cryptocurrency – Petro, tied to the official currency of the country.

Venezuela’s Petro is backed by oil, gas, gold and diamond reserves in the country, and aims to bypass US sanctions and give access to international funding.

Just a month after its release, the US President Donald Trump issued a decree banning Americans from investing in cryptocurrency.