A general of Iran has advocated the use of cryptocurrency to escape US sanctions imposed on the country. He also added Iran must develop solutions such as the exchange of products and the use of cryptocurrencies with its partners in other countries.
27 February, 2020 | AtoZ Markets – Iran has long been a target of several sanctions imposed by international government entities, especially the United States. Sanctions isolate a nation from the global financial system. It prevents international entities from investing in local projects or by letting sanctioned nations trade easily with global partners.
Iran Embraces Cryptocurrency to Avoid US Sanctions
An Iranian general called for a unique way to circumvent the sanctions imposed on his country by the United States. Saeed Muhammad, General of the Islamic Revolutionary Guard Corps, called on Iran to use cryptocurrencies to circumvent economic sanctions. Coinit.ir first shared the news, a Farsi-language crypto news organization, in Telegram Wednesday. He said:
We are asking for the creation of a more sophisticated mechanism (a commodity exchange) to circumvent the sanctions. We need to develop solutions such as exchanging products and using cryptocurrencies with our partners in other countries.
Sanctions Impact on Iran’s Economic
The people of Iran have seen their currencies drop significantly in value. It is due to sanctions imposed by the Trump administration after the U.S. withdrew from the joint comprehensive action plan in 2018.
The sanctions have effectively isolated Iran from foreign trade and investment, and the use of cryptocurrencies has increased since then as a means of circumventing them. Bitcoin has been described as one of the only ways to get money in and out of the country.
The administration of Iranian President has announced that it will launch a national cryptocurrency as early as 2018. More recently, the Iranian Ministry of Industry, Mines and Trade has issued more than 1,000 cryptocurrency licenses for national operations.
Most recently, the Financial Action Task Force, the intergovernmental body that creates standards to combat financial crime around the world. It added Iran to its own blacklist due to its alleged non-compliance with anti-terrorism financing requirements.
Iran has laid the groundwork for wider use of cryptocurrencies. The national government had previously worked with blockchain start-ups to update its financial infrastructure, private banks.
Think we missed something? Let us know in the comment section below.