The Iranian state press reported that the Central Bank will soon launch a sovereign cryptocurrency, which is 100% premined and expects the “command” of President Hassan Ruhani. Explanations on the use and rules for the exchange of state tokens will be explained by the country’s regulator as early as the beginning of September.
The sovereign cryptocurrency will help Iran avoid US sanctions restricting the sale of oil, so experts draw analogies with Venezuela’s option.
The Bolivarian Republic issued El Petro, radically replacing local Bolivar with it, but the main idea of using tokens was the sale of hydrocarbons in conditions of high public debt and subsequent default. Despite the successful report of the authorities, there is not a single proof of such transactions.
As for Iran, world sanctions have already limited oil supplies, which did not prevent neighboring China from illegally taking tankers with this raw material, as well as a number of Middle Eastern countries. The introduction of the cryptocurrency will not be able to replace this scheme, as payment for supplied hydrocarbons was carried out at a discount. Moreover, this time the country is only under US sanctions, not supported by other countries.
At the moment, in the country since December 2017, the exchange and turnover of the cryptocurrency are banned, the Central Bank is rightly afraid that they will be used to withdraw funds, against the backdrop of the falling rate of the local rial.