Cryptocurrencies have turned out to be the lifeline hotels in Iran were looking for after the severe American sanctions on the country’s banking system.
A Saving Grace
In what looks like a definitive proof of the intrinsic value of cryptocurrencies and their immutable nature, Iranian hotels have purportedly begun accepting digital currencies.
My friend is booking hotels in Iran that require a deposit. The note in the email reads: "Payments in cryptocurrency might sound a bit strange, but the severe American sanctions on Iran's banking system have left us with not many choices."
— Leo Weese 獅 草地 (@LeoAW) July 19, 2018
While it doesn’t come from an official authority, the tweet reveals a critical sentiment – cryptocurrencies, unlike fiat, are immune to centralized, one-sided sanctions. What is more, they provide a helping hand in times when a country’s tourism industry doesn’t have many other options.
Not Really a Surprise
Bitcoin (BTC) has long turned out to be a convenient alternative to those who have no access to US dollars in Iran. What is more, the largest cryptocurrency was reportedly gaining serious momentum in the country because of the US sanctions imposed in the form of trade bans and economic embargos.
Unfortunately, in April, the Central Bank of Iran (CBI) moved to prohibit financial institutions from transacting with cryptocurrencies.
Nevertheless, earlier this month, the benefits of Bitcoin’s borderless, as well as neutral, currency became even more evident. The US was obviously worried that Iran requested a withdrawal of 300 million euros from German banks. The move came as an attempt to offset the effect of the newly imposed US sanctions after Washington stepped away from the 2015 nuclear deal.
Speaking on the matter, Richard Grenell, the US Ambassador to Germany, said:
We encourage the highest levels of the German government to intervene and stop the plan.
Do you think Iran will be forced to start using Bitcoin as a viable alternative to the US dollar? Don’t hesitate to let us know in the comments below!
Images courtesy of Shutterstock and Twitter/@LeoAW.