Sanctions Buster? Iran Eyes Cryptocurrency To Blunt US Deterrent

Iran is considering the possibility of starting the circulation of cryptocurrencies through local banks, in a move that may help them overcome the dominance of the dollar and avoid the US sanctions imposed on it last Tuesday.

Iranian Minister of Communications and Information Technology Mohamed Jahromi said on Wednesday that Iranian President Hassan Rohani had instructed the Central Bank and the Ministry of Communications to hold a joint meeting on cryptocurrencies and submit new proposals for their circulation.

During a meeting of the Iranian government, jahromi stressed the possibility of trading digital currencies, pointing out that the studies were conducted in this regard, but the activation of the plan has not yet been completed, according to the Iranian news agency IRNA.

The Iranian minister said that the government's vision in this regard that these currencies do not necessarily constitute a threat but can create opportunities.

So far, Iran's digital currency is banned, but after the first package of US sanctions on Iran comes into force, Tehran can turn to these currencies, which are uncensored, especially as the sanctions target Iran's banking system, including the purchase of The Iranian government of the US dollar, the gold trade and the sale of government bonds, with Washington imposing a complete ban on the implementation of the second package of sanctions, which imposes restrictions on Iran's central bank and its financial transactions.

Digital currencies have risen dramatically in the past two years despite warnings from central banks around the world of the risk of investing in them. Unlike the dollar or the euro, digital currencies are not supported by a central bank or government.