Iran is moving ahead with the controversial policy. It is planning to launch a national cryptocurrency. The reason behind which the country is trying to overcome the sanctions which the US is going to enact.
In a recent development, the Iran government recently stated that it will be launching the domestic cryptocurrency on an experimental basis. Since then, US sanctions have been enforced on a run. Moreover, the US has given till September for the nations to comply with the sanctions as well. That is why the time period in which the Iran government has is pretty less. Apparently, this cryptocurrency creation will avoid an economic blockade as well.
For a long period of time, the government of Iran, as well as the Central bank of Iran, has been positive on cryptocurrencies. It is unlike some of the other governments as well as authorities all over the world. That is why it is not averse to the idea of launching a cryptocurrency as well.
Recently, a state also fired the governor of the Central bank, Valiollah Seif, as he had not prepared enough for the US sanctions.
Iran is not the only country which is planning to launch a cryptocurrency. Also, Cambodia has launched it stated owned cryptocurrency. Venezuela earlier also launched its own cryptocurrency. This was after the adverse impact of crude oil as well. That is why this has precedence as well.
Moreover, Venezuela is attempting to link the cryptocurrency to its currency. As a result, there will be a direct correlation between both.
If indeed, Iran launches the cryptocurrency, it will certainly attract the attention of other nations who want to raise capital as well. Moreover, it can be good for the economic growth if the economy is downtrodden and the cryptocurrency is launched on a worldwide basis. That is why it will be a positive move for not just Iran but other cryptocurrencies which are planning to do so as well.
Investors are looking forward to the cryptocurrencies which are backed by the sovereign guarantee. That is why any cryptocurrency which is being launched by a country will find plenty of takers as well. Moreover, the cryptocurrency market has a significant amount of institutional investors as well. As a result, a large sum of money can be easily raised with the help of cryptocurrency. This is one of the main reasons why a significant amount of money can be easily raised.
It remains to be seen whether Iran is able to mitigate the effects of the US sanctions with the help of the government-backed cryptocurrency. If indeed, it is able to do that, other countries might follow suit as well. One such country will be Russia. It remains to be seen whether US takes any extra steps in order to prevent Iran from mitigating the effects of the US sanctions.
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