The government of Iran is planning to lift the blanket ban on cryptocurrency and launch its own national cryptocurrency backed by Iranian rials, according to reports by state-controlled media. The country is expected to deliver new digital currency regulations in September.
The proposed launch of the experimental indigenous cryptocurrency by the Iranian central bank is expected to help the country overcome the heavy financial sanctions imposed by the US.
Regarding the ban on cryptocurrency, Nasser Hakimi, the deputy for innovative technologies at the Central Bank of Iran, stated that the financial regulator in the country will be reviewing the blanket cryptocurrency ban during September, which was first announced on April 22 of this year. The ban was intended to address concerns regarding money laundering and financing of terrorism.
It is expected that the state-backed cryptocurrency will be similar to bitcoin with transactions carried out on an online ledger called a blockchain. But, the public can not mine it as the infrastructure will be private.
Alireza Daliri, the Directorate's deputy for management and investment affairs, reportedly told that many Iranian tech companies have the skills to develop a digital currency and that they have to work on removing pre-launch flaws.
Venezuela recently announced its own state-backed cryptocurrency tied to the country's official currency, which was designed to circumvent US sanctions. The petro cryptocurrency is backed by the country's reserves of oil, gas, gold and diamonds.
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