Iranian government plans to implement a new infrastructure for Bitcoin users in the country.
In positive news for Bitcoin users, the Iranian government plans to implement a new infrastructure for Bitcoin users in Iran.
Tensions between Iran and the US
Bitcoin is known to start with countries in the west and as the tension rise between Iran and the US, the former is strategizing to incorporate Bitcoin into its system. Iran and the US currently have a problem in their relationship as Donald Trump called the deal with Iran as “the worst deal ever.”
The Islamic republic is still suffering from international sanctions that affect several of its economic sectors, including finance, energy and the shipping industry. International sanctions have also hindered Iranian citizens’ ability to use online payment platforms like PayPal, Venmo and Braintree.
With the sanction, the Iranian government has come up with a way to go around and that is through the implementation of Bitcoin as the main form of online payment. One of the advantages of Bitcoin is the fact that it is a decentralized currency which cannot be controlled by a central identity like a corporation or government; thus countries are not able to sanction payments.
With Bitcoin, Iranian citizen could easily bypass economic sanctions and be able to conduct international trades.
Bitcoin Infrastructure for Iran
The acknowledgment of Bitcoin to Iran’s economy is a huge milestone for cryptocurrencies. This means that the government can now open their doors for advancement in terms of payment and currency.
According to reports, the Iranian government has already researched Bitcoin and its possible benefits for its economy.
Amir Hossein Davaee, Iran’s Deputy Minister of Information and Communication Technology. shares:
“The ministry of communications and information technology has already conducted a number of research studies as part of efforts to prepare the infrastructure to use Bitcoin inside the country.”
Moreover, Davaee added that Bitcoin activities include money creation, so the Central Bank of Iran needs to set the ground rules and supervise related activities, otherwise, this would disrupt the economic cycle. Iran is now on the edge of creating a proper infrastructure not only for Bitcoin but also for other cryptocurrencies.
Once this project is finished, they will be properly integrated and regulated. After the economy of Iran greatly suffered from sanctions, experts believe that Bitcoin and other digital currencies will greatly help Iran’s economy to get back on track.
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Author: Lisa Froelings