The Iranian economy is looking for a much needed boost and the country’s policy makers are looking towards blockchain and cryptocurrencies as a pathway for recovery. Iranian currency news shows that interest in blockchain has spiked because of its decentralized feature which makes control near impossible.

Tehran Times filed a report showing that an Iranian official Alireza Daliri, who works under the country’s Vice Presidency for Science and Technology is advocating the adoption of blockchain technology to boost the economy.

Blockchain Benefits Being Reaped By Countries

The official who stated that over a hundred countries are benefitting from the decentralized economy made possible by blockchain said that the country can take advantage of its partners in various parts of the world to facilitate adoption of decentralized systems made possible by the distributed ledger technology also known as blockchain.

This will make Iran join countries that are already reaping the benefits of its wide range of applications. Daliri acknowledged that there have been concerns as such raised by countries over some demerits of the technology however he was emphatic that the merits far outweigh its setbacks.

A Serious Look At Blockchain Adoption

Daliri maintained that the benefits of the technology is such that his department is keen at finding ways of applying it for various aspects of the economy to enable the country derive full benefits accruable from the technology.

The futurist looking policy stems from the fact that Iran which has been under sanctions is seeking ways to boost its economy.

 “This is possible with empowering the infrastructure of the blockchain technology with the help of government and private sector,”

Daliri said.

Speaking on how the application of blockchain could help the economy, he pointed out that tech-based growth is one of the blockchain’s most significant selling points, and it is something that every country will need.

“This is possible with empowering the infrastructure of the blockchain technology with the help of government and private sector,” 

Decentralization is Key to Freedom of Central Control

The emphasis on blockchain stems from its decentralization which makes it difficult for one entity to control. Furthermore, the report from the Iranian official suggests that the country starts laying groundwork to ensure that infrastructure for the technology is made available.

He highlighted the need for an Iranian national digital currency which he said would serve as a backup for Iranian Rial which has been under monetary pressure since the sanctions were imposed on the country.

The need to backup the Rial with another currency this time a national digital currency was raised earlier in the year when it became obvious that Iranian policy makers were seeking a national digital currency to shore up the effects of the sanctions.

Circumventing Sanctions

This has become very necess ary considering that the country seeks to find routes to circumventing the restrictions of the US imposed sanctions on its economy.

A national digital currency will enable the country transact with its allies without the need to use the USD for payment. The Iranian financial institutions will surely look up to such scenario after years of restrictions.

Despite the high rate of adoption of digital currencies in Iran, the effects of the sanctions may put pressure on big exchanges to exclude nationals of the country as they try to comply with US regulations.

Nevertheless, it is likely that Iranians will still have access to some exchanges that are not concerned with compliance since there are many such platforms that are fundamentally against any form of control even by influential country such as the US.

Bitcoin for School Fees

Iranian students in places like the UK are already resorting to Bitcoin adoption to by-pass banking restrictions placed on their country due to the sanctions. For instance, Parsa Sadat a law student in Reading ,UK has been told by the school authorities to go to Iran and get cash for his school fees prompting condemnation from many quarters.

 “Even if the funds for the flight and fees can be raised, requiring Parsa to transport large amounts of cash within and from a country classified by the Foreign Office as a high-risk country, exposes the university to justifiable criticism,”

said Mai Sato, an Associate Professor at Reading.

“Parsa himself feels that carrying several thousand pounds in cash is dangerous.”

Aside the Iranians, other countries that have experienced economic downturn such as Zimbabwe and Venezuela are looking at cryptocurrencies as a pathway to economic recovery and escape from sanctions.

An Eye On Digital Currencies

Iranian currency news shows that the country’s authorities have been favorably disposed towards digital currencies. In September, crypto mining was legitimized as the government moved to develop a policy that enables development of crypto policy.

That move contributed to the spike in the value of Bitcoin in that month. As cryptocurrencies gain acceptance, it will likely limit the impact of sanctions and will likely prompt US policy maker to keep a close eye on this potential of the coin market.

What policy new do you think the US will adopt  towards cryptocurrencies as more countries under sanctions look at coins such as Bitcoin for reprieve? Send in your comments below.