Iran Embracing Blockchain to fight Sanctions

Per information on international news outlet, Aljazeera Iran is moments away from reverting its current situation of sanctions through developing its state-owned digital coin. For more information concerning the coins launch the public has to wait for the two-day Electronic Banking Conference to commence. According to Aljazeera, the government will divulge more information during the two-day conference starting on 12 January. The conference will be held in the country’s capital Tehran and its theme this year is blockchain revolutions.

For the Iranian government, the actions taken by US President Donald Trump to impose sanctions hasn’t held the government back from exploring other options to tackle issue brought by sanctions. Furthermore revoking some of its local banks from accessing SWIFT was a wakeup call. The government had to take drastic measures to prevent a crisis that would have crippled the economy significantly. For them, blockchain technology provided a means to an end. The country was in a sorry state financially because payments for exports and imports couldn’t be made to respective agencies after SWIFT banned its local banks.

Benefits of Blockchain

With the lack of a communication channel to SWIFT, Iran banks can’t make large cash transfers both locally and international. But with a state-backed cryptocurrency in place together with its backbone blockchain groundwork will be done. Rolling out of the blockchain platform will connect local banks and other institutions in the crypto industry into one financial network hence enable the transfer of funds. Furthermore, the blockchain network will be rolled out in the coming days to include local citizens and enable them to pay for goods and services through the crypto.

Although sanctions are hurting Iran’s economy the emergence of cryptocurrency and blockchain technology are giving the country an opportunity to save its economy from a looming catastrophe. The government has even set plans in motion to create a regulatory framework for the crypto space. Per information on Aljazeera by the end of the current financial year, Iran’s central bank will announce the rolling out of the regulatory framework being worked on. Just like Venezuela, Iran is opting to leverage blockchain technology and its state-owned digital coin to navigate its way out of sanctions.

To ensure its platform is successful Iran turned to its ally Russian and together are working towards developing an alternative platform for SWIFT with blockchain technology and its state-backed coin been the centerpiece.