Iran To Release National Cryptocurrency This Week

Wilfred Michael 

Wilfred Michael

Reporter

28 January 2019,
11:57
Iran To Release National Cryptocurrency This Week

Three days to the end of January reports from Al Jazeera has revealed that Iran will launch its long-awaited cryptocurrency at the two-day Electronic Banking and Payment Systems Conference which begins tomorrow, 29th January.

When Iran unveils the new cryptocurrency, it will become among the first nations in the world to launch a central bank-backed digital currency (CBDC), following the footsteps of Senegal, Venezuela, Tunisia, and the Marshall Islands.

The only difference between Iran and the regions mentioned above is that the new National cryptocurrency is designed to help the country subvert sanctions imposed on it by the U.S government, and also maintain its banking relationships.

In November, we reported that Iran was disconnected from global messaging and payments settlement system, SWIFT, a development that crippled the nation's import and export.

Disconnection from SWIFT means that Iran can no longer pay for its imports or receive payment for its exports to other countries.

The new cryptocurrency, however, is the first step to Iran getting back the international trade scene.

Iran's National Cryptocurrency Roadmap

  • A rial-backed digital token that facilitates payment between Iranian banks and other institutions within the country

  • An instrument for citizens to use as a payment option for goods and services

  • A tool for Iran to join a new SWIFT-like blockchain based system currently under development by a coalition of yet to be named nations.

Although the report failed to identify the nations that Iran is partnering with for the SWIFT-like blockchain based system, the country's recent partnership with Russia suggests that the European country, which is also under U.S sanctions could be an ally.

Following the signing of the deal in November, Russian blockchain developers were allowed to step into the Islamic nation while a new blockchain advisory and research center was opened at the Sharif University of Technology.

The new cryptocurrency expected in the next few days will be the first fruit of that union, and there could be many more to come.

 

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