Home News Bitcoin US Introduces Draft to Ban Iran from Creating Sovereign Cryptocurrency

US Introduces Draft to Ban Iran from Creating Sovereign Cryptocurrency

December 24, 2018 13:15
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A draft legislation has been introduced the US Congress in order to prevent Iran from creating its own cryptocurrency.

According to a news report by news portal Bitcoin.com, the Blocking Iran Illicit Finance Act bans U.S. citizens and companies from all transactions and dealings in Iranian digital currency. Not just that, the bill also talks about imposing sanctions on foreign nationals and organizations that support the development of the cryptocurrency.

The legal document states, “All transactions related to, provision of financing for, and other dealings in Iranian digital currency by a United States person or within the United States are prohibited.” The bill also details on the sanctions that will be imposed by the United States President Donald Trump may impose on violators abroad. The sanctions could range from prohibiting the opening of a bank account and blocking any property transactions in the United States and foreigners may even be banned from entering the United States of America.

The portal noted that the Republican representatives have also directed the Secretary of the Treasury with producing a report on the progress made by the government of the Islamic Republic in creating a sovereign cryptocurrency. The report should be sent to the Congress within the first four months of the reenactment of the law. The report will contain a description  of the technical details of the cryptocurrency that’s being developed by Tehran.

Iran had announced that it would be launching its own sovereign cryptocurrency as earlier reported by Crypto-News India. Iran’s state-backed digital coin is very different from Bitcoin and Ethereum. As against Bitcoin and Ethereum, which are issued based on mining and compliance with a mathematical formula, the supply of Iran’s digital token will be controlled by the country’s central bank. The digital coins will not be mined and transaction records can only be accessed on a private blockchain. The cryptocurrency would also be backed by the country’s fiat, Rial.

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