Cryptocurrency like Bitcoin to be used by Iran to escape Donald Trump’s sanctions

The recent hustle-bustle between Iran and the United States of America seems to have taken a new turn. The Iranian government is all set to develop its own cryptocurrency in order to escape from the United States sanctions, as reported by a local newspaper.

The Directorate of Deputy of Management and Investment Affairs, Alireza Daliri said that several domestic companies have developed the digital currency. The digital currency is still in progress and they will launch it after fixing all the flaws. He further stated that the companies are working in coordination with the Central Bank of Iran [CBI].

Alireza told ISNA news agency that they are trying to prepare the grounds to use the virtual currency in the country. He further stated that the digital currency would help the country to transfer money anywhere around the world and would also help the nation during the U.S sanctions.

The announcement comes in the limelight right after the speculations that the Iranian and the Russian government are looking to launch their own cryptocurrencies. The Chairman of the Iranian Parliamentary Commission for Economic Affairs, MP Mohammad-Reza Pourebrahimi had recently proposed the idea of launching digital currency in Moscow.

MP Mohammad had stated that the CBI was asked to look into the proposal of digital currencies by the Iranian Parliament. Pourebrahimi had discussed this during the State Duma Committee on Economic Policy and further stated they have Russia’s corporation for the launch of the digital currency.

The chair of the Iranian Parliamentary Commission of Economic Affairs said:

“They share our opinion. We said that if we manage to move this work forward, then we will be the first countries that use digital currencies in the exchange of goods.”

The launch of the cryptocurrency has been unveiled right when the President Rouhani spoke regarding the U.S withdrawing from the Joint Comprehensive Plan of Action [JCPOA] also known as Iran nuclear deal. JCPOA was created in 2015 and the member countries of the deal with Iran were Russia, France, China, United Kingdom, the United States and the European Union.

On 9th May 2018, President Donald Trump withdrew from JCPOA, which sparked a lot of controversy around the world. Trump claimed that the deal was ‘one-sided’ and it should have never existed. The other member countries including the European Union have decided to remain in the agreement as it a non-bilateral agreement. Trump has faced opposition from the member countries for withdrawing from the agreement.

The President of the United States has been pressuring the members of the agreement to withdraw from the deal and has threatened to impose sanctions on European companies that do business with Iran. Moreover, the American firms are not allowed to do business with Iran and foreign countries that do business with Iran will no longer have access to the U.S Banking and Financial System.

During his speech, President Rouhani stated that the government has “plans for the contingencies from months ago and will not face any serious problems at all.” The government had previously urged all the sectors to coordinately work with the government and the roadmap of the economy is in its preparation stage.

Many speculate that the launch of the cryptocurrency might be to stabilize the country’s economy if the sanctions are passed.

Moreover, a related news emerged on Wednesday, Tehran had announced that the national encrypted key has been developed, which would use the blockchain technology. The key will be implemented in the national banking system and will be released within three months. They also mentioned that banks will be able to build smart contracts.

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