Report: Iran May Establish A National Cryptocurrency To Bypass U.S. Sanctions

© Morteza Nikoubazl / Reuters

Futurism: Iran May Move to Create Its Own National Cryptocurrency

A government official in Iran recently tweeted that the country will be establishing a national cryptocurrency. If so, Iran would join Venezuela in creating a means of circumventing financial sanctions.

Digitized Loophole

Another nation may be working on the formation of a national cryptocurrency. Following a meeting with Iran’s central bank’s board of directors, Iranian Information and Communications Technology Minister MJ Azari Jahromi tweeted the bank was planning to “implement the country’s first cloud-based digital currency using the capacity of the country’s elite.”

However, shortly afterwards, the country’s Central Bank released a statement saying that the bank was not pursuing the creation of a national cryptocurrency. The statement notes: “The wild fluctuations of the digital currencies along with competitive business activities underway via network marketing and pyramid scheme have made the market of these currencies highly unreliable and risky.” The bank continued by warning Iranian citizens that the volatility in the crypto market could cause investors to lose their assets.

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Update: Iran developing national cryptocurrency to bypass US sanctions (RT)

WNU Editor: The Iranian Central Bank is saying no .... that due to “The wild fluctuations of the digital currencies along with competitive business activities underway via network marketing and pyramid scheme have made the market of these currencies highly unreliable and risky.”

The Iranian Central Bank's position is the right one .... cryptocurrencies are still in the infancy stage, price points are all over the place, and it is only a question of time before they are regulated. But this story also exposes the difficulties that Iran is facing if it wants to work in the international banking system. On the one hand they want to support groups that are on terror watch lists, but on the other hand they want to enjoy the benefits of being plugged into the international banking system. They have to realize that they cannot have both.

Update #2: Iran's eastern shift shows patience running out with the West (AFP)