Iran backs national cryptocurrency!

Iran and its state-owned cryptocurrency have been in a discussion and are likely to launch a national cryptocurrency backed up fiat currency, Rial. As soon as the Central Bank of Iran (CBI) approves its application, this national cryptocurrency will be issued to Fintech organizations for testing purposes. The new name of the cryptocurrency is not yet revealed.

The Central Bank of Iran has decided to launch the country’s own cryptocurrency along with the support of NCC and decided to list out the attributes. It appears to have similarity to the shadowy bitcoin because the transaction will occur via the Blockchain or distributed ledger technology, which stores information about all transactions across a user network. “The infrastructure is supposed to be an ecosystem for the Iranian banks.”

Why a state-owned cryptocurrency?

The is mainly going to be used to run stress less financial payments, bank to bank settlements and retail banking. On top of all, the new cryptocurrency will be used in a direct transfer. It will employ in a distributed and one-to-one framework for transferring without the involvement of any institute.

The purpose of the launch was the USA. With the US pulling out one of the nuclear deal, it has led to ignoring the US dollar in the country by coming up with their own domestic currency. The crypto will be thus launched to buy money or transfer from anywhere in the world and help them in sanctions. It has an idea that the speculation about United States implementation of the recently threatened sanctions is imminent and will likely occur in the future. The cryptocurrency is dubbed as a digital form of Rial. Illegal activities, including money laundering around cryptocurrency, was in the past gave rise to Iranian ban. This is not the first country which has revealed its own cryptocurrency, for example even Venezuela has its own digital currency. Although the difference is that Petro is not being backed up by its country’s currency.

The government had announced in April, that they were experimenting with the digital domestic currency. The government had been very cool on cryptocurrency. Last year, Iran was looking at Bitcoin as a solution for the country being cut off from international payment networks, but in February, central bank nixed the idea, expressing distaste for cryptocurrency in general. The central bank then cracked down on institutions offering cryptocurrency services to combat capital fight.

The fiat currency is being backed up by Rial, and the ISC has stated the following attributes:

• The national cryptocurrency of Iran is Rial-backed and has been designed by the Informatics Services Corporation based on hyper ledger Fabric Platform technology.
• This will be issued by the Central Bank of Iran and the volume of issuance will depend on the bank's decision.
• It has been developed under the private Blockchain technology and infrastructure and thus cannot be mined.
• The infrastructure thus created is supposed to be an ecosystem available for Iranian banks and active companies in cryptocurrencies area after being tested and reviewed.

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