The United States has imposed sanctions on Iran for a very long time now. These international sanctions have been hindering the Islamic nation from participating in international trade. The subject of decentralization and cryptocurrencies is attracting the attention of Iran’s top officials. The Iranians view digital currencies as a way to out smart the sanctions imposed by the U.S. and participate in the international trade market.
Earlier this week, a General in the Iranian army called for the use of crypto to dodge the sanctions imposed by the U.S. Moreover, General Saeed Muhammad, commander of the Islamic Revolutionary Guard Corps asked Iran to adopt digital currencies, and elude the economic sanctions. As per the Telegram channel of an Iranian crypto media organization, the General addressed a crowd on Feb. 26 and said:
Will Iran Sanction Countrywide Crypto adoption?
In particular, Iran is beginning to feel the heat of the economic sanctions. Iran has seen the value of its legal tender drop massively since Trump’s government imposed sanctions on the country in 2018. Just last year, the adverse effects of the economic restrictions sparked Iranians to stage huge protests against their government.
Nevertheless, the growing popularity has instilled fresh hope to the collapsing Islamic economy in recession. Recently, the Ministry of Industries, Mining and Trade reportedly rolled out over 1,000 mining licences to as the crypto industry is being said to be stabilizing an already frail economy. Massive adoption of cryptocurrencies would massively increase the tension among Iranians. However, whether the government will sanction country wide crypto adoption, we are yet to find out.
Indeed, president Hassan Rouhani’s government publicly announced in 2018 that it will develop a national digital currency.
Iran not the only one seeking crypto’s help
In conclusion, Iran joins a list of several nations that are weighing on using cryptocurrencies to circumvent economic sanctions. North Korea was reportedly; used digital currencies to evade sanctions and also fund its ballistic missile programs. Additionally, Venezuela is another economically ravaged nation that has tested the power of cryptocurrencies to evade sanctions.