Iran Develops Cryptocurrency After the Central Bank Disallows Bitcoin Exchange

Iran has developed its own blockchain-based cryptocurrency. The move comes days after the Central Bank of Iran (CBI) banned bitcoin trade amid rising concerns about money laundering and uncertain bitcoin price changes.
Mohammad Javad Azari-Jahromi, Iran's Minister of Information and Communication Technology said it was prepared to experiment on cryptocurrency, ahead of possible US economic sanctions.

Cryptocurrency Iran is jointly developed by the CBI, the state-run Central Bank, and the Iranian Ministry of Information and Communication (ICT).

"Last week in a joint meeting aimed at exploring the progress of the project, it was announced that the experimental model was ready," Azari-Jahromi said, as reported by the state news agency IRNA.

Azari-Jahromi underlined that Iran's bitcoin ban does not mean the country is opposed to the virtual currency in general, and suggests that the Central Bank ban does not include local cryptocurrencies.

"The prohibition of the Central Bank does not mean a ban or restriction on the use of digital currency in domestic development," he said. "The CBI ban on bitcoin transactions is made because of concerns about volatility in the crypto market that can cause people to lose their assets. Bitcoin is not the only cryptocurrency."

As previously reported, Iran banned bitcoin trade in early April 2018 after its national currency, the rial, fell to a record low amid concerns that the United States may be out of Iran's nuclear deal. If so, the Iranian economy will be destroyed under the heavy burden of US economic sanctions.

President Donald Trump has until May 12, 2018, to decide whether he will extend Iran's nuclear deal, signed by former President Barack Obama in 2015.

Iran's nuclear deal is unpopular in the United States amid growing public worries that Iran has financed terrorism worldwide and secretly developed nuclear weapons, which goes against the agreement.

Azari Jahromi earlier said the experimental Iranian cryptocurrency will be supported by assets, in the same way from Malaysia regarding emerging support to GoldX cryptocurrency.

When asked whether Iran developed its own cryptocurrency to avoid US economic sanctions, Azari-Jahromi replied: "All cryptocurrencies are able to avoid sanctions because they are not under the supervision of the US financial regulator, and national digital currencies are naturally capable of doing this."