A high-ranking Iranian parliamentarian sees digital currencies as one of the main tools which could help the country to circumvent U.S. sanctions. In the interview with Mizan News Agency, the politician said that the parliament will soon discuss this issue. Chairman of the Economic Commission of the Iranian Parliament Mohammad Reza Pour-Ebrahimi said that in order to get rid of what he precise to be U.S. hegemony, it will be necessary to use virtual currency.
One of the main priorities of the Iranian parliament in the current unstable economic situation is a deep study of the issue of monetary contracts as a mechanism for evading sanctions. As the US economic sanctions for Iran become a real threat, the national currency faces a serious danger of hyperinflation. In recent months, Rial has lost half of its value.
The tension between Iran and the United States is growing since May 8, when the US withdrew from a nuclear deal with Iran. President Trump threatened to introduce the most severe economic sanctions against Iran, which could enter into force in November 2018.
WHY IS IT IMPORTANT?
1. Iran has been cut off from the global economy for a long time - payment systems such as Visa and Mastercard, for instance, are unavailable there. The economy has been under tremendous strain, with the particular stress falling on the export-oriented oil and gas sectors.
2. If the country will officially implement cryptocurrency as a legal form of money, U.S. will not be able to block its spread.
Earlier in May, Mohammad Reza Pour-Ebrahimi has announced the decision to allocate more than $ 2.5 billion to buy cryptocurrency. The country was also planning to develop its own state crypto.