The central bank of Iran has promised the introduction of a cryptocurrency. The digital money should help to avoid American sanctions. The previously unnamed currency should be backed by Rial.
While Iranian President Hassan Rohani is under increasing pressure due to the poor economic situation, the country’s central bank has announced the introduction of a cryptocurrency. The digital money should help to bypass American sanctions, which will make cross border payments more difficult. As the central bank’s computer service announced, the unnamed cryptocurrency will be underlayed with the Rial. After a test phase, the means of payment should be used between banks and companies, later also in public.
Previously, Venezuela was the first country to introduce its own cryptocurrency called Petro. Washington resigned from the nuclear agreement with Iran in May and imposed new sanctions in August. Increasing isolation is slowing down Iran’s economy. Unemployment and inflation have risen, the rial has lost much of its value.