Iran has reportedly finalized a draft document on the matter of cryptocurrency in the country. This move comes as the government plans to create a state-issue virtual currency to circumvent U.S. sanctions.

Details of the Draft Document

According to local news media outlet Financial Tribune, a draft document on a proposed national cryptocurrency has been prepared. The article also stated that the Iranian President, Hassan Rouhani had earlier ordered such a report to be developed.

Speaking to another local news media outlet, IBENA, Saeed Mahdiyoun said that the country is taking concrete steps to create a state-issued cryptocurrency. According to Mahdiyoun, the nation’s cyberspace authority is at the forefront of these efforts.

Cryptocurrency Regulations Imminent

Mahdiyoun, the deputy director of the Supreme Cyberspace Council of Iran also said that more clear-cut cryptocurrency regulations are imminent. According to Mahdiyoun, most of the uncertainties around virtual currencies in Iran will soon be a thing of the past. The country’s apex bank is reportedly set to release a definitive policy on digital currencies before the end of September 2018.

Earlier in the year, the Central Bank of Iran banned commercial banks from facilitating cryptocurrency transactions. This prohibition was part of a raft of measures taken by the government to stabilize the currency situation in the country. Even with the adoption of a unitary forex rate, Iran’s currency has continued to decline as economic sanctions begin to bite harder.

Cryptocurrency as a Means of Circumventing Economic Sanctions

While the government continues to consider its options, Iranians had taken to Bitcoin and other cryptos a long time ago. Recently, reports emerged that hotels in the country accept cryptocurrency payments as a way of bypassing the restrictions brought about by U.S. sanctions.

For the government, the rhetoric hasn’t always been consistent – one minute receptive of the system, the next minute banning it. However, the one thing that is clear is the fact that the government is set to follow in the footsteps of Venezuela by creating a national cryptocurrency.

Virtual currency payments are processed over a decentralized blockchain without the need for intermediaries like banks and clearing houses. A state-issued cryptocurrency could, in theory, allow Iran to bypass the SWIFT banking network and do business with other countries.

Do you think Iran will be successful in using cryptocurrency to circumvent U.S.-led sanctions? Let us know your views in the comment section below.

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