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Iran Set to Launch Its Own Digital Currency to Circumvent U.S. Sanctions

Iran is set to launch a national digital currency to help the country dodge the impending United States economic sanctions, following in the footpaths of Venezuela.  Both nations are the focus of U.S. sanctions,  State-Sponsored Press TV reported July 25.

Reportedly, local authorities have already started “a plan to create an indigenous cryptocurrency” that will act as both local currency and a universal settlement token for global trade and commerce while circumventing economic sanctions.

As reported by the local media house, Alireza Daliri, the deputy for management and investment affairs at the Directorate for Scientific and Technological Affairs of the Presidential Office said: “We are trying to prepare the grounds to use a domestic digital currency in the country.”

“This currency would facilitate the transfer of money [to and from] anywhere in the world. Besides, it can help us at the time of sanctions,” Daliri said.

Recently, Iran developed its premier encrypted key using decentralized ledger technology (DLT). The new platform is expected to be adopted in the nation’s banking sector as a means of settling financial transactions in commercial banks.

On the same note, Amir Hossein Davaie, an advisor to the telecoms ministry, stated that the national digital currency would initially be used only for clearing bank transactions, “but after gaining more experience, it is possible for the national cryptocurrency to be used publicly.” According to a report by  Financial Tribune on Wednesday.

In April, in a bid to halt a currency crisis, the Iranian central bank banned the commercial banks and other financial institution from dealing in cryptocurrencies over money-laundering worries.

Iran isn’t the only nation to turn to blockchain currencies to dodge western economic sanctions. Earlier this year, Venezuela launched its national cryptocurrency dubbed ‘Petro’ backed by country’s oil reserves. On Wednesday, Venezuela President Nicolas Maduro announced a 14 days delay to a prearranged currency redenomination to Aug. 20  when the country will expurgate five zeroes off the revamped national currency and also anchor it to Petro digital currency.

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