Iran Develops An Experimental Local Cryptocurrency After Central Bank Ban
Iran says an experimental model of an Iranian cryptocurrency has been developed based on the blockchain technology, and can significantly facilitate financial transactions in the country when created. This has happened only a few days after the Central Bank of Iran (CBI) banned bitcoin trading amid escalating concerns about money-laundering and bitcoin’s erratic price swings.
Iranian Minister of Communications and Information Technology Mohammad Javad Azari Jahromi says the Iranian cryptocurrency is being developed under a joint project involving the
- Ministry’s ICT Research Institute,
- Central Bank of Iran’s Monetary and Banking Research Institute
- The state-run Post Bank.
“Last week, in a joint meeting aimed at exploring the progress of the project, it was announced that the experimental model is ready.
“The Central Bank’s ban does not mean the prohibition or restriction on the use of the digital currency in domestic development,”
Iran joined the growing list of nations to crack down on cryptocurrencies, including India and Pakistan who made roughly similar moves in early April. A central bank circular said, based on a ban on cryptocurrencies passed by Iran’s anti-money laundering body in December stated,
“Banks and credit institutions and currency exchanges should avoid any sale or purchase of these currencies or taking any action to promote them,”
When asked if Iran is developing its own cryptocurrency to circumvent U.S economic sanctions, Azari-Jahromi replied,
“All cryptocurrencies are capable of circumventing sanctions because they are not under the supervision of the U.S. financial regulatory body, and the national digital currencies are naturally capable of this.”
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