Iran will issue a national digital currency on the agenda. Will this be a gap to avoid US dollar sanctions?

5 years ago
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It is difficult for people to have confidence in a central institutions digital currency.

to reportto reportThe Ministry of Science and Technology of the Iranian government has recently put on the agenda a plan to develop a national encrypted digital currency.

Alireza Daliri, deputy director of the Science and Technology Affairs Bureau of the Presidents Office of Iran, said in his speech that the currency will be the tokenization of the national legal tender rial (rial), which is currently being developed in cooperation with the Central Bank of Iran. launched within.

As for the circulation channel, like legal tender, it is sent from the central bank to commercial banks in Iran, and then to the citizens.

Iran will issue a national digital currency on the agenda. Will this be a gap to avoid US dollar sanctions?Before Iran, Sweden, Kazakhstan and other countries have announced the issuance of national digital currencies, but the development progress is obviously not as eager as Iran. Sweden, for example, expects to launch it in 2019 at the earliest. Irans anxiety may only be understood by Venezuela, which launched a national digital currency in February this year. Both countries face economic sanctions from the United States for political reasons.

In May of this year, the United States announced its withdrawal from the nuclear agreement signed with Iran in 2015 and the resumption of economic sanctions. From August 6, it will restrict the conversion of Iranian currency to US dollars. Like Iran, a country that mostly relies on oil exports and then imports other supplies from abroad, its daily economic and trade activities can be said to be inseparable from the US dollar.The U.S. dollar’s ​​restriction order can be said to have greatly restricted its foreign-related economic activities. If the sanctions are more severe, the United States can also impose sanctions on any country that conducts economic and trade exchanges with Iran.

Therefore, Iran wants to follow in the footsteps of Venezuela to avoid the dollar, the hard currency of international trade. But it is still difficult for other countries to accept the digital currencies of these countries.

the reason is,For example, the petrocoin anchored by Venezuela and its own oil (recently, it is also said that it will be linked to legal tender), and the digital currency anchored by Iran and the rial, only borrows the form of encrypted currency in form, and lacks decentralization And transparency, such as Venezuela stipulates that President Maduro has the right to manage the issuance, organization and operation of the petro currency, which will make it difficult to give the market confidence in investment (this is indeed the case from the current investment situation of the petro currency). Without enough new dollars coming in, their worries cannot be resolved.

However, a more feasible way is that these countries sanctioned by the United States can conduct digital currency-based transactions, such as. Both Venezuela and Iran have engaged with Russia, the larger economy, which has so far been reticent.

Iran will issue a national digital currency on the agenda. Will this be a gap to avoid US dollar sanctions?

Original article, author:黄雪姣。Reprint/Content Collaboration/For Reporting, Please Contact;Illegal reprinting must be punished by law.

ODAILY reminds readers to establish correct monetary and investment concepts, rationally view blockchain, and effectively improve risk awareness; We can actively report and report any illegal or criminal clues discovered to relevant departments.

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