Iran’s head of Trade Promotion Organization has revealed that the country is talking with representatives of 8 countries to start transactions with it in its newly developed cryptocurrency. Will it work?
Iran’s national cryptocurrency is the talk of the town nowadays. And why not – after all, Iran has become the second country after Venezuela to launch its own cryptocurrency for bypassing US sanctions. We already told you two days ago that the country is going to launch its cryptocurrency very soon, and now we’re hearing that it has started negotiations with other countries to present its new invention as an alternative to US dollar. As many as 8 countries are part of the talks going on, and this information has been revealed by none other than the head of Iran’s Trade Promotion Organization (ITPO).
That’s right. Mr. Mohammed-Reza Modoudi, the head of ITPO, recently spoke to a local news outlet on the subject. And what he said was something that certainly won’t be liked by the US. He said:
“Representatives from Switzerland, South Africa, France, England, Russia, Austria, Germany and Bosnia have visited Iran to hold related talks about the issue.”
Now, Switzerland is a pioneer in the world of finance and also the provider of many financial services that are used all over the world. If it agrees to use the new cryptocurrency devised by Iran for trade purposes then other countries like Germany, England, and France may also give it some serious thought. And if these countries, all of whom are at loggerheads with United States on several key issues, agree to use the ‘Crypto-Rial’ then other countries may also decide to follow suit.
United States had imposed severe trade sanctions on Iran last year in November. Countries who trade with Iran were also warned to stop doing so immediately. Only 8 countries, including close allies like India and South Korea, were left exempt from the sanctions. Remaining countries were cut off from Iran’s oil market, gas market, shipping market and even from Iranian financial system.
In the meantime, Central Bank of Iran has also lifted its Bitcoin ban and published the first draft of crypto regulations to pave way for the legitimization of Crypto-Rial. An Al-Jazeera report stated that while the country has lifted majority of bans imposed earlier on crypto assets, the ban on the use of these assets inside Iran still continues to be in place. What that means is trading of cryptocurrencies in Iran is allowed, but use as a means of exchange is not. Mining operations are also allowed.
Now let’s see how many countries join Iran in its journey to break the hegemony of US dollar. Venezuela has made a similar attempt earlier, but it had failed miserably. Iran’s effort, however, is a bigger one because Russia has hinted that it’s working on financial systems that will work independently of SWIFT. Though Russia had also been involved with Venezuela’s development of Petro, Venezuela is actually a much smaller nation than Iran so its proposal didn’t have the kind of impact that Iran’s proposal can have. Let’s see how things go this time!