While reports suggest that Iran’s economy is far from a crash, they still cannot be called an economically stable nation. However officials did not clarify the intent, they announced that Iran will soon be launching its own gold-backed cryptocurrency.
Countries with weak and crumbling economies seem to be able to spot the value that cryptocurrency brings to the table. It wasn’t so long ago when Iran announced a ban on all cryptocurrencies, but things are taking an unexpected U-turn with this announcement.
According to a Central Bank of Iran official, a national cryptocurrency would make the use of Iranian banks’ frozen resources easier.
The Iran-U.S. rivalry is only worsening by the day with no reasonable solution seemingly on the horizon. Being a far smaller economy, and one that heavily relies on the U.S., Iran is facing tremendous consequences in terms of its economic standing.
Last month, the CBI Chief announced that due to the weakening Iranian rial against the U.S. dollar, it would be establishing a ‘secondary currency market.’ While he didn’t specifically come out and say that Iran was developing its own cryptocurrency, in hindsight, it is now clear that ‘secondary economy’ in his announcement was referring to a national cryptocurrency.
Iran faced a huge public outcry due to the sudden rise in prices of imported goods, and it seems that Iran is seeking refuge in a stable gold-pegged cryptocurrency.