Last week Iran’s central bank prohibited banks in the country from dealing in cryptocurrencies. Despite the ban, the Republic is going ahead with the development of its local cryptocurrency.
Iran’s government’s money laundering committee has come to a conclusion that various cryptocurrencies are being used as means for money laundering and financing terrorism. Following this decision, the central bank issued a ban on cryptocurrency.
Despite these proceedings Iran is going ahead with the development of its state-sponsored cryptocurrency. Information and Communications Technology Minister, Mohammad Javad Azari-Jahromi said that the central bank’s ban will not mean prohibition or restriction of the use of digital currency in domestic development. He also announced that a state-issued cryptocurrency is now ready for trial.
The currency was developed due to fears stemming from the risks new sanctions pose to Iran’s economy. U.S. President Donald Trump will decide by May 12 whether to restore U.S. economic sanctions on Iran.
By Ekaterina Ulyanova