Iran is determined to complete its project of creating a national cryptocurrency, and despite the international pressures promoted by the United States, it seems that the success of this venture is not an impossible thing.
According to a very brief article published by the Tehran Times, the acting head of Iran’s Trade Promotion Organization (TPO) Mohammad-Reza Modoudi, explained that the use of a national cryptocurrency could have an attractive geopolitical advantage by making it possible for the country to bypass unilateral sanctions imposed by the United States:
“Starting a new chapter in its international monetary transactions to circumvent U.S.-led sanctions, Iran is in negotiating the use of cryptocurrency in its financial transactions with eight countries.”
After satisfying all the conditions imposed by the United States and the European Union to prevent the development of an industry based on the use of nuclear energy, the European Union lifted the sanctions applied to the Iranian government. However, the United States unilaterally decided to keep the sanctions.
Although the European Union tends to reflect U.S. policies, Mohammad-Reza Modoudi explained that major European economies are interested in Iran’s offer:
“Representatives from Switzerland, South Africa, France, England, Russia, Austria, Germany, and Bosnia have visited Iran to hold related talks about the issue,”
As reported by Crypto Crimson, the Iranian government had announced that the national cryptocurrency was following a carefully designed plan to ensure its global acceptance. In the first place, the issue would consist of a stable coin backed 1:1 with Iran Rials.
Iran: Using Cryptocurrencies to Win The Geopolitical Game
Likewise, the cryptocurrency will run on a private blockchain, mainly for strategic reasons; however, several media speculated on the idea that the banks could be responsible for partial nodes, guaranteeing the transparency of the economic activity.
On this matter, Seyed Aboutaleb Najafi, Chief Executive Officer of Informatics Services Corporation (ISC) commented that they are still in the process of designing all the necessary infrastructure to guarantee the functioning of this stable coin:
“In order to realize renovation and create new infrastructure in our banking system, banks’ back-end processes which is still in paper and traditional way should be changed and evolved,”
Likewise, Gholamreza Jalali, the head of Iran’s Passive Defense Organization, commented that the main problem for global acceptance of “Crypto Rial” is precisely the excessive power exercised by the United States over the SWIFT system:
Cryptocurrencies can help bypass certain sanctions through untraceable banking operations … our major problem here is the US dollar because the United States uses its national currency to control any country’s SWIFT operations, so we should reduce dependence on the dollar and replace it with another currency.
It is very possible that the negative influence of the United States on the Iranian economy will be diminished if this country’s talks with the European Union are successful.