Iran could unveil its cryptocurrency to avoid sanctions momentarily

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Iran is anticipated to announce a state-backed cryptocurrency at E-Banking and Payment Systems according to Al Jazeera. The conference, whose theme is “blockchain revolution” this year, takes place from January 29 to January 30 in Tehran.

The Iran-issued cryptocurrency is expected to have the following features:

  • Backed by the Rial, the national currency of Iran
  • Developed by Informatics Services Corporation and built on Hyperledger Fabric
  • Central Bank of Iran will be the issuer
  • It will initially be available for Iranian banks as an interbank payment instrument
  • The second phase will as an instrument for retail payments in Iran

Some of the largest Iranian banks were disconnected from SWIFT in November, a financial messaging service, after the U.S. reimposed oil and financial sanctions against Iran. In early November, the Governor of the Central Bank of Iran said the country had already started working on a SWIFT alternative. Later in November, Iran signed a blockchain cooperation agreement with Russia and Armenia. Russia also announced that it is actively working with partners on establishing a financial system that is fully independent of SWIFT. 

Iran could also use its cryptocurrency to avoid sanctions to trade with partner countries. It is, however, not going to give the citizens access to the international financial system as the sanctions won’t allow for  it to be listed on cryptocurrency exchanges.

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Iran could unveil its cryptocurrency to avoid sanctions momentarily written by Larry Cermak @ https://www.theblockcrypto.com/tiny/iran-could-unveil-its-cryptocurrency-to-avoid-sanctions-momentarily/ January 28, 2019 Larry Cermak

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