The Republic of Iran reportedly announced its plans to launch its own national cryptocurrency. The Iranian government started arrangements to create its own cryptocurrency in an attempt to avoid sanctions imposed by the unites states earlier this year.
Iran’s economy is on the verge of collapsing following the recent sanctions passed by the United States. To protect the country, the Iranian Informatics Service Corporate (ISC), the country’s leading provider of banking services, has finalized a draft of the nation’s own cryptocurrency.
According to the local outlet, Ibena, the Central Bank has revealed the details of the national cryptocurrency, which was developed by the ISC. In the announcement made by the Central Bank, the cryptocurrency will be backed by the Iranian rials. The cryptocurrency will be issued by the Central Bank who will have the discretion to decide on the volumes, which distributed to the public.
The announcement also revealed that the national cryptocurrency would not be mined. This is because the currency is recorded on a private blockchain based on open-source Hyperledger Fabric technology. The Hyperledger Fabric technology is an open-source blockchain framework hosted by the Linux Foundation. IBM and Blythe Masters’ Digital Asset Holdings originally developed the technology.
The ISC revealed that the cryptocurrency would be deployed out in two faces. Firstly, the cryptocurrency will be deployed as a token and interbank payment instrument. In the second phase, the currency will be used as an instrument for retail payment in a society.
The ISC further added that:
“After being tested and reviewed, the cryptocurrency is supposed to be as an ecosystem available for Iranian banks and active companies in the cryptocurrencies industry.”
Alireza Daliri, who is the deputy for management and investment at the Directorate for Science and Technology Affairs, stated while speaking to local news outlets that the currency will be used to facilitate the transfer of money anywhere in the world.
Iran began its plan to create their own cryptocurrency back in February when the United States government and the Iranian government had a falling out over a nuclear deal. When the deal failed to go through, US president, Donald Trump ordered sanctions against the country. Iran decided to follow Venezuelan’s footsteps and create their own cryptocurrency in hopes of saving their economy.
Venezuela created and launched its own state-backed cryptocurrency back in February called, the Petro. They have also created a new national currency pegged on the Petro. Rumors also stated that Russian was also looking into cryptocurrencies to protect its economy from sanctions imposed by the United States.