Iran State Cryptocurrency – The U.S-imposed sanctions is crippling Iran economically and the Islamic state is reportedly on the verge of announcing its state-backed cryptocurrency to evade these U.S Sanctions.
The ability of Iranian financial institutions to conduct transactions and relate with the rest of the world has been shackled since the sanctions were enforced and many believe the Iranian cryptocurrency will help abate some of the effects of the sanctions. It has also been reported that the Iranian government expects to make an announcement concerning the digital asset at the annual Electronic Banking and Payment Systems Conference, which kicks off in Tehran on January 29, 2019, according to Al Jazeera.
The Donald Trump administration imposed sanctions on Iran back in the middle of 2018 over “malign activities” being carried out by the state. By November, Belgian-based financial messaging system SWIFT was banned from providing its financial services to Iran.
Citizens of countries such as Iran, which have been banned from the SWIFT network, find themselves unable to make and receive payments for foreign trade activities and a wide array of other international transactions. This made the country to take solace in the development of its own digital currency, as many saw this as the only way to ensure that Iranian banks and citizens could continue to conduct the cross-border transactions.