Iran Has Finalized Draft Document For Cryptocurrency

Iranian banknotes and foreign coins are displayed by a vendor on a side walk of the Ferdowsi Street in Tehran, Iran, Wednesday, Jan. 23, 2013. Iran's national currency lost nearly 40 percent of its value in 2012. Each U.S. dollar was traded at about 10,000 rials as recently as early 2011. Iranian authorities have accused the West of waging an "economic war." The country is living under stepped up Western sanctions that also include banking restrictions that make it increasingly difficult for Iran's Asian customers to pay for oil deliveries. (AP Photo/Vahid Salemi)

In an effort to a bypass US sanctions, Iran has finalized a draft document concerning cryptocurrency as they plan to create a state-issue digital asset.

The Iranian news outlet Financial Tribune, has reported that the document on the national cryptocurrency has been drafted for President Hassan Rouhani, an official at Iran’s National Cyberspace Center.

The local news media outlet, IBENA, reported Saeed Mahdiyoun, the deputy director of the Supreme Cyberspace Council of Iran, stated that the country is indeed making a national cryptocurrency.Iran’s cyberspace authority is leading the project.

Mahdiyoun, also said that definitive regulations over cryptocurrency is forthcoming. The country’s leading bank has announced a release a clear policy on digital assets before October 2018.

Currently, the commercial banks are banned from processing cryptocurrency transactions, as issued by the Central Bank of Iran earlier this year. The ban was in response to the sanctions imposed on the country and was an attempt to stabilize the the nations fiat currency. Despite measures taken, the economy is struggling under the sanctions imposed on them.

The government is currently weighing its options, while the people have already delved into cryptocurrency, such as the recent news that hotels in the country has begun accepting cryptocurrency payments as a way of circumventing the restrictions laid on by U.S. sanctions.

Iran has been back and forth concerning the crypto market, but the government looks set to follow the lead of Venezuela, in an attempt to assuage the South American country’s staggering inflation, they aim to create a national cryptocurrency.

Digital asset payments are facilitated over a decentralized blockchain bypassing intermediaries like banks and clearing houses. A government-issued cryptocurrency may give Iran to avoid using the SWIFT banking network and conduct business with other countries.