In what will come as a minor blow, the United States of America removed Iran from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. The move was the latest of the sanctions imposed by the United States. Earlier this year, the country had removed Iran commercial banks from the SWIFT network, which will prevent Iran from sending and receiving funds to its allies.
However, all hope is not lost. Earlier, this year, Iran had hinted that it might be switching to cryptocurrencies, in a way to bypass the US sanctions. In July this year, Iran’s bitcoin trading volumes skyrocketed after the US passed the sanctions. As earlier reported by Crypto-News India, in the black market, the rate went further higher and was trading on an average of 100,000 Rials for a USD. With economic collapse gaining momentum and fears of Rials losing value, locals have started putting their money in gold coins and virtual currencies in order to circumvent the large effect of the economic sanctions.
As the Iranian Rial’s rate saw a sharp decline, the rates of Bitcoin in the underground market too increased dramatically in July. Dealers were quoting $20,000 for 1 Bitcoin and the same dealer was selling it at $10,000 only last month, whereas the international prices were hovering around the $6500 level.
In an interview with RT, economist and Kingston University professor Steve Keen, heavily criticized the U.S. government for isolating the central bank of a sovereign nation from the global financial system. He said, “The US has gone rogue, and cannot be allowed to dictate economic or political policy to the rest of the world. The sooner the rest of the world develops an alternate payments system – possibly working through SWIFT, but using a basket of currencies as the basis for a supra-national unit of exchange – the better. The USA is big enough to bully what should be an impartial means for monetary transactions between countries. This should not be possible.”
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