Iranian Government Readies Itself With Economical And Infrastructural For Using Bitcoin

The government of Iran have for long been making preparations to build up a solid economic and infrastructural footing which can impart a positive inertia to Bitcoin’s success saga in their home country. The ministry of Information Technology revealed that, “arrangements are being made” for turning dreams into reality “as early as possible.”

Amir Hossein Davaee, Iran’s Deputy Minister of Information and Communication Technology recently pointed out during an interview conducted by Shargh newspaper last week that, “The Ministry of Communications and Information Technology has already conducted a number of research studies as part of [its] efforts to prepare the infrastructure to use Bitcoin inside the country.”

He emphasized on the fact that cryptocurrency needs the solid backing of both infrastructural and economic aspects, the addition of which will be favourable to the country’ overall interest. “We, as the main centre in Iran dealing with the country’s technology developments, have taken very seriously the issue of preparing the infrastructure for the new currency. Arrangements are being made with the related organizations to put together the infrastructure as early as possible,” he was quoted saying.

The Central Bank of Iran does not recognize the legal standing of transactions entered into using Bitcoin. Thus it has always advised local business houses to stay away from engaging in cryptocurrent powered transactions. However so law has yet been passed by the government authority banning the use of cryptocurrencies as a payment method. In the meanwhile the concerned authorities have been working round the clock to bring in proposed regulations in the digital spectrum for enhanced transparency.

Also Read: Central Bank Of Australia Voices Support Towards Bitcoin & Cryptocurrency Usage

Iran residents mostly rely on Coinava, an Australian-based peer-to-peer marketplace and Localbitcoins for establishing connectivity in between buyers and sellers without engaging in actual Bitcoin transactions. Iran’s Bitcoin group in Facebook has an active participation of 29,000 members at present.

YJC news agency explained that Iranian companies have made use of Bitcoin but refrain from revealing their identities out of fear from the tax laws. The publication also interviewed Iranian economist Morteza Imani-Rad regarding his take on the current scenario of Bitcoin’s impact on Iranian economy. He said, “This money is not legal in Iran and bitcoin transactions are not legal and legally unrecognizable, so we do not expect them to have any effect on the Iranian economy.”

He also holds the belief that Bitcoin’s market cap is not big enough for facilitating international buying and selling of oil contracts. “Bitcoin cannot be easily installed in Iran and therefore cannot have an impact on the Iranian economy,” he added while citing that indigenous websites offering Bitcoin related information have already been blocked by the country’s firewall.

But this could not stop certain Iranians from availing the service of international Bitcoin dealers who rely on forex trading although “entering the forex trading market is not that easy” in Iran given the fact that it is “very restrictive.”

He concluded by stating that, “Bitcoin is ongoing and may become more common. If this happens, then the government may be forced to use this money, especially as the money transfer through banks for Iran, if it remains a part of the sanctions.”

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