US sanctions push Iran towards Bitcoin

As economic sanctions have started to break the economic stature of many countries, citizens and governments are looking for better alternatives and find cryptocurrency a reliable solution. The world’s third-largest oil producer, Iran now turns towards cryptocurrencies to ease the economic damage.

The Central Bank of Iran will draft a policy framework for the mining of cryptocurrencies in the next 18 days as Iran has agreed to officially recognize the crypto mining as an industry. Abolhassan Firouzabadi, The Secretary of Iran’s Supreme Council of Cyberspace, told IBENA, that strengthening the cryptocurrency trade between Tehran and its partners is a potent step towards a better future especially in the wake of renewed US sanctions.

According to the report, the Cyberspace Council’s secretary Abolhassan Firoozabadi stressed that the mining of cryptocurrencies such as Bitcoin (BTC) has been approved as an industry by major government authorities. However, official legislation forming a legal framework for the industry has yet to be introduced in the country.

Firoozabadi said that crypto mining has been accepted as an industry by Iran’s major authorities, including the Ministry of Information and Communications Technology, the Central Bank, the Ministry of Industry, Mine and Trade, the Ministry of Energy, as well as the Ministry of Economic Affairs and Finance.

Firoozabadi stated that the Iranian National Cyberspace Center is developing a platform for cryptocurrency mining regulation. He said in a statement to IBENA that launching a national cryptocurrency is promising. He also stated that it showed promise in being used as a financial transaction instrument with Iran’s trade partners and friend countries. This is due to the rising economic pressures through U.S. sanctions.

The secretary reportedly claimed that the relevant authorities will introduce a regulatory framework for crypto-related startups and firms in late September.

He also added that the mining of cryptocurrencies has been accepted as an industry by many governmental and related authorities. The list includes the Ministry of Communications and Information Technology, Central Bank, Ministry of Industry, Mining and Trade, Ministry of Energy and the Ministry of Economic Affairs and Finance.

The weakening of the Iranian Rial against the US Dollar is a point of contention for many, as economic sanctions by Donald Trump have driven European markets to withdraw from Iran. The President sent a clear message when the sanctions were passed earlier this year in August, thus forcing many companies to choose between Iran and the United States as target matters.