Iran is fighting against US sanctions with its own cryptocurrency – and details have now been revealed

As America reintroduces its sanctions against Iran, the country is fighting back with its own national cryptocurrency…

One of the ways in which Iran is looking to offset the reintroduction of sanctions, brought back in as a consequence of Donald Trump removing the USA from a nuclear agreement involving the country, is by use of its own cryptocurrency.

The sanctions came back into force at the start of this month, with Trump adding in a Tweet that “these are the most biting sanctions ever imposed”, and declaring that in November “they ratchet up to another level”. Trump also warned other nations that if they did business with Iran, they wouldn’t be doing business with the US.

Iran, therefore, is pressing ahead with its previously-revealed cryptocurrency project.

Now, the Information Services Corporations of Iran (ISC), which in turn is an official affiliate of the country’s central bank, has confirmed that Iran’s official cryptocurrency will be backed by the Rial, the country’s existing national currency. Furthermore, the new crypto will be issued by Iran’s central bank, that it’s using a private blockchain, and as a consequence won’t support cryptocurrency mining.

The thus-far unnamed currency is designed for Iranian banks and companies, although there are plans in the second phase of the project to allow it to be used for retail payments by end consumers. No time scale has been put on that at this stage, nor is there an official date for the launch of the new cryptocurrency in the first place.

That said, with sanctions squeezing on Iran already, and with tougher times ahead, it’s unlikely that the Central Bank of Iran will be looking to delay.

Image: BigStock