Due to the threat of fresh U.S sanctions the Iranian government is considering launching its own cryptocurrency.
According to an official news outlet, the Science and Technology department of the government is looking into developing a digital currency system in partnership with Iran’s Central Bank.
At present, the department is simply preparing for a situation in which they may need to launch a new monetary system. The new digital currency would facilitate cross-border payments in the event that U.S sanctions are applied. It will be backed by Iran’s local currency the rial and will in essence simply create a blockchain-based version of it.
Alireza Daliri of the Department of Science and Technology, says the project would hopefully be developed and integrated into the countries banking system within three months.
Fresh sanctions and crypto bans
The new U.S sanctions that President Donald Trump plans to impose follow his decision to withdraw from the nuclear agreement that the previous U.S. president Barack Obama agreed with Iran back in 2015. The sanctions are designed to cut off the Iranian government’s access to U.S dollars and are planned to be implemented on August 6.
Iran has been actively exploring blockchain technology for a while but has also clamped down on external cryptocurrency exchanges. In April this year the Central Bank of Iran (CBI) banned organizations from dealing in cryptocurrencies and in May this year, the government began blocking access to cryptocurrency exchanges due to them facilitating money leaving the country.
Image From Shutterstock