Iran to Develop Own Cryptocurrency

The Islamic Republic of Iran is set to become the second U.S.-sanctions hit country to have its own state-backed cryptocurrency. The move follows Venezuela`s launch of its own oil-backed cryptocurrency named Petro earlier in the week.

Iran`s Information and Communications Technology (ICT) Minister MJ Azari Jahromi made the announcement on Twitter following a meeting with the board of directors of state-owned Post Bank of Iran.

Jahromi wrote on Twitter. `In a meeting of the board of directors of the post-bank on digital currency-based blockchains. it set out the necessary measures for the pilot implementation of the country`s first digital currency. using the country`s elite.`

`A pilot model for review and approval will be presented to the banking system of the country.` he added.

According to a report by Iran Front Page news. following Jahromi`s public announcement on a state-backed digital currency. The Central Bank of Iran highlighted the `highly unreliable and risky` nature of cryptocurrency markets. It warned that Iranians may lose their financial assets in a space marked by extreme volatility and pyramid scheme-like businesses.

The Central Bank of Iran is set to join a list of a few other countries such as Singapore. China. Russia. and the U.K.. whose central banks are making moves to launch a state-backed digital currency.

Like Venezuela. Iran has also been the target of U.S. financial and economic sanctions. The launch of the cryptocurrency by Iran is seen as a plan to ease the country`s economic crisis. and circumvent U.S.-led sanctions.

Meanwhile. Venezuela`s President Nicolas Maduro claimed its cryptocurrency Petro evoked overwhelming response on the first day on Tuesday and $735 million was raised within 20 hours of pre-sale. He hopes the introduction of Petro would help to ease the country`s economic crisis. and circumvent sanctions.

Venezuela`s economy has been reeling under pressure of the US sanctions. falling oil revenue and the plunging value of its currency. the bolivar.

 

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