Iran reveals plans for its cryptocurrency

Iran reveals plans for its cryptocurrency. After Venezuela, Iran could also launch its own national digital currency.

THEIran has revealed the details for the preparation of its own national cryptocurrency, in response to economic sanctions induced by the United States.

According to Informatics Services Corporations (ISC), a central bank affiliate, the future cryptocurrency of Iran will be supported by Rial and will be developed on the Hyperledger Fabric open source technology of Linux Foundation. Unlike decentralized cryptocurrencies like Bitcoin, issued in accordance with an algorithm, the Iranian digital Rial will be released based on the decision of its central bank. That being said, Iran's digital currency cannot be extracted using mining procedures, and transaction records will only be accessible on a private blockchain.

"The infrastructure should be an ecosystem available to Iranian banks and to companies active in the cryptocurrency area after a test phase," IBENA said. ISC also clarified its intention to use the digital rial as an interbank payment instrument in phase one, and as a local payment instrument in phase two.

Saeed Mahdiyoun, deputy director of Supreme Cyberspace Council (SCC), a government-affiliated agency that is overseeing regulation of the Iranian digital currency draft, told an Iranian newspaper that President Rouhani supported their initiative. Thus, the head of state wants to free Iran from the pressure of the Trump administration's economic tactics.

Iran will clarify the position on Bitcoin

Mahdiyoun also stated that the Central Bank of Iran could soon clarify its position towards the use of the most famous cryptocurrencies, such as Bitcoin ed Ethereum, by the end of September. At the moment, the authorities do not allow citizens to carry out cryptocurrency-related transactions for money laundering issues, and have imposed sanctions on those who become protagonists of such transactions.

At the same time, the Iranians seem not to be affected by the imposed cryptographic prohibition. Struck by a weakened and oppressed Rial of capital restrictions, the Iranians are parking their money in relatively safer assets like gold and Bitcoin.

The national cryptocurrency is not the only defense

Meanwhile, Iran is taking all possible measures against US-induced sanctions, starting with an open legal battle with Washington. Tehran should challenge the Trump administration in the United Nations International Court of Justice.

At the same time, Iran is trying to get growing international support. After Qatar, which had promised $ 15 billion aid to Tehran, the European Union, one of the most influential allies in the United States, has promised aid for around 21 million dollars to the Middle East.