The Central Bank of Iran (CBI) is expected to lift its widespread ban on cryptocurrencies in the coming weeks as part of its new regulatory framework on digital currencies.
As noted by EghtesadOnline, the CBI’s deputy for innovative technologies, Nasser Hakimi, has provided further confidence that the institution will legalize cryptocurrencies in a matter of weeks.
The CBI previously banned all Iranian financial institutions from dealing with cryptocurrencies on April 22, in an effort to — as is often the case — deter money laundering. However, Minister of Communications and Information Technology Mohammad Javad Azari-Jahromi claimed the ban was actually a measure to stop cryptocurrencies from being used as flight capital while the rial spirals out of control, according to EghtesadOnline.
SponsoredThe ban has also reportedly been ineffective at stopping cryptocurrency exchanges from operating in the country.
An official lift of the ban would serve only to legitimize Bitcoin and other cryptocurrencies as a viable alternative currency with an increasing demand.
Fiat Crises Legitimizing Cryptocurrency
Iran continues to consider the prospect of issuing its own national cryptocurrency in the face of a worsening fiat currency crisis.
Meanwhile, Venezuela has notably become the first nation to issue its own government-backed cryptocurrency, Petro. However, little faith has been placed in the project — something Hakimi is aware of.
Do you think the potential legalization of cryptocurrencies in Iran further legitimizes them as alternative currencies? What is your opinion of state-issued cryptocurrencies? Let us know in the comments below!
