Iran plans its Own State Cryptocurrency

Contrary to reports of the Iranian government preparing the ‘infrastructure’ for bitcoin usage in the country, Iran’s central
bank has refuted claims of recognizing bitcoin as a legal currency. In November, Iran’s minister of Information and
Communications Technology (ICT) revealed the ministry was preparing to embrace bitcoin as a solution to bypass economic
sanctions that has previously disconnected Iran’s banking system from global commerce and finance. “The ministry of
communications and information technology has already conducted a number of research studies as part of efforts to prepare
the infrastructure to use Bitcoin inside the country,” ICT minister Amir Hossein Davaee reportedly said at the time. Iran
underwent a banking blackout after global payments rail SWIFT banned the country from its network in 2012, a blockade that
lasted four years until sanctions on Tehran were lifted by former US President Obama’s nuclear deal in 2016. Within weeks,
Iran’s High Council of Cyberspace (HCC) stated its ‘positive’ view on cryptocurrencies, specifically bitcoin, with
regulations. “We welcome Bitcoin, but we must have regulations for Bitcoin and any other digital currency,” stated HCC
secretary Abolhassan Firouzabadi. However, the country’s central bank has now reportedly poured cold water on any embracive
notion toward cryptocurrencies, rejecting previous reports of authorities keen on Bitcoin. According to local news resource
Iran Front Page, the Central Bank of Iran says it has never recognized bitcoin or any other cryptocurrency as an official
currency in the country. The central bank warned investors that they “may lose their financial assets” in crypto-related
investments due to market volatility.


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