Amidst growing concerns of economic uncertainty, Iran has come out and revealed the details of its national cryptocurrency. According to a report by Informatics Services Corporations (ISC), an affiliated body of the Central Bank, the cryptocurrency is backed by rial, and is developed on the Linux foundation-led-open-source Hyperledger Fabric technology.
According to Informatics Services Corporations (ISC), Iran’s future cryptocurrency is backed by Rial and is developed on the Linux Foundation-led open-source Hyperledger Fabric technology.
The digital rial is released on the decision of the Central Bank and is a bit different from other decentralized cryptocurrencies, like Bitocoin. This new cryptocurrency cannot be mined and its records can only be accessed on a private blockchain.
According to a report by IBENA news agency, “The infrastructure is supposed to be as an ecosystem available for Iranian banks and active companies in cryptocurrencies area after being tested and reviewed.”
The Informatics Services Corporation (ISC) is planning to use the digital rial as an interbank payment in phase one and local payment medium in Phase Two.
In an interview to an Iranian daily, Saeed Mahdiyoun, Deputy Director of the Supreme Cyberspace Council (SCC) said that Iran’s President Hassan Rouhani has supported the initiative and it is a way out for Iran from the pressure tactics of the Trump administration. The SCC deputy, however, avoided releasing details about the currency’s deployment plan.
Iran to finalize its stand on other cryptocurrencies by September
There was a clear cut message from Mahdiyoun which said that Iran would soon clear its stance on other cryptocurrencies like Bitcoin and Ethereum by September end. At present there’s a strict ban on cryptocurrency related transactions in the country and there’s provision for harsh punishments for those who indulge in it.
The economic sanctions have started to take its toll on Iran with the Rial continuing in a constant downward spiral against the dollar. But this hasn’t dampened the spirits of Iranians who seem unaffected by the cryptocurrency ban and are spending heavily on Gold and Bitcoins.
The country’s local Bitcoin exchanges have lately experienced high cryptocurrency volumes, and the value of Bitcoin touched a high of $20,000 in the regional underground market. The total value stands around a mammoth $2.5 billion which Iranians have spent to buy cryptocurrencies and evade state-sponsored restrictions.
Getting ready for the fight
Tehran is not taking the US-led sanctions sitting down and is planning to challenge Trump’s administration in the UN’s International Court of Justice. There’s also support coming from unexpected quarters, as the European Union, one of the strongest U.S. allies has vowed a $21 million aid to the Middle East country. This comes after Qatar had earlier promised a $15 billion aid to Iran.
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