Iran Steps up Plan to Launch CBDC and Clear the Wave on Cryptocurrencies

The Iranian government will add its name to the list of countries with a national cryptocurrency very soon. Local news source, Financial Tribune reported this weekend that a draft for the proposed cryptocurrency is ready. In addition, the uncertainty about cryptocurrencies like bitcoin will soon be over.

Saeed Mahdiyoun, an official of Iran’s National Cyberspace Centre also mentioned in the report that the “plan to create a national digital currency is earnestly being pursued in the recent meetings of the High Council for Cyberspace.”

The official also had some good news for crypto enthusiasts in Iran. The Central Bank is set to make known its official stance on cryptocurrencies by the end of September. This will likely bring to an end to the ban on cryptocurrency operations within the country.

For the time being, cryptocurrency transactions are banned by Iranian banks and credit institutions. The ban is as a result of money laundering concerns that were first raised in December 2017 when BTC price was on the high side.

Iran’s pursues CBDC to avoid US sanctions

As reported earlier by Coinfomania, the Arab country has confirmed that it will introduce a Central Bank backed cryptocurrency in order to dodge US sanctions. President Donald Trump looks set to cancel a nuclear agreement that has been in existence between the two countries since 2015.

This will make it difficult for Iranians to purchase US Dollar or transact business with the country. However, having a native cryptocurrency that is pegged to Iran’s fiat currency “Rial (IRR)” will provide a channel for the nation to engage in international trade freely. This is because cryptocurrencies are a global means of exchange.

An official working with the Directorate for Scientific and Technological Affairs of the Presidential Office said last month,

“We are trying to prepare the grounds to use a domestic digital currency in the country. This currency would facilitate the transfer of money (to and from) anywhere in the world. Besides, it can help us at the time of sanctions.”

Aside from Iran, Thailand is also another country that is working on introducing a CBDC. The duo will join Ecuador, Tunisia, Senegal, and Venezuela as the first countries to release a central government backed cryptocurrency.