Iran Completes Development of Rial-Supported National Cryptocurrency

Banks to Be Granted State Digital Currency

After getting Central Bank of Iran’s approval [it] will be used in the country’s banking system … in the first phase the blockchain banking infrastructure will be granted to Iranian commercial banks to use it as a token and payment instrument in transactions and banking settlement.
Rial-Backed Cryptocurrency to Neutralize Sanctions
On Nov. 5, the U.S. announced severe economic sanctions against Iran that, with the exception of just eight countries, cut the rest of the world off from the country’s oil, shipping and gas market, including its financial system. An earlier round of sanctions in May targeted Iran’s currency, aviation industry and other sectors, as President Donald Trump broke away from his predecessor Barack Obama’s engagement with Tehran.
For Iranian national cryptocurrency, rial has been chosen as a support, namely in exchange for each single national cryptocurrency unit, its rial equivalent in the central bank’s account is blocked, therefore, it never creates liquidity.Like Venezuela, which has issued a state-sanctioned cryptocurrency called the petro, Iran, the world’s third largest oil producer, is hoping to leverage cryptocurrencies to compensate for the expected squeeze in petrodollars arising from the economic sanctions designed to stem oil exports from the country, the economy’s lifeblood. Brigadier General Gholam Reza Jalali, head of Iran’s Civil Defense Organization, has talked about the “great opportunities” presented by cryptocurrencies and how they “can help bypass certain sanctions through untraceable banking operations.” What do you think about the Iranian national cryptocurrency? Let us know in the comments section below.
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Banking system Blockchain central bank of iran Economy & Regulation Financial settlements Informatics Services Corporation Iran N-Economy Payments rial Sanctions Seyyed Abotaleb Najafi State-issued cryptocurrency U.S.