Iranian authorities have ramped up efforts to build a national cryptocurrency with the primary aim of allowing international trade and commerce. In a bid to evade the financial sanctions and restrictions on international funding placed on the country by the likes of America, the currency will function in a similar role to the petro token developed in Venezuela. On the other hand a bill has also been passed in the US to enforce sanctions against the country in a bid to delay/stop the development and deployment process.
International relations have hit a all time low with the US backing down from the Joint Comprehensive Plan Of Action earlier this year in May. Furthermore, restrictions were also placed on domestic developers and crypto companies preventing them from aiding in the development of the Iranian crypto project. This includes financial funding and even providing coding services which would expediate the development process for the country.
“Withdrawing from the JCPOA was only the first step in ratcheting up pressure on the Iranian regime,” Gallagher said in a statement. “We now have an important window to impose maximum economic pressure and degrade the Iranian regime’s ability to export violence across the region. This legislation does exactly that by effectively cutting Iran off from the international financial community.”
The US remains cautious of the development of the cryptocoin due to the possibility it will be used to fund violence and engage in illegal trade with other countries. Due to the anonymous and digital nature of crypto itself, it has long been used and exploited to fund terror in a number of middle eastern countries including Iraq. Iranian Bitcoin traders have already been subject to arrests by US authorities which released personally identifiable information recently.
“We are publishing digital currency addresses to identify illicit actors operating in the digital currency space. Treasury will aggressively pursue Iran and other rogue regimes attempting to exploit digital currencies and weaknesses in cyber and AML/CFT safeguards to further their nefarious objectives.”
To conclude, Iran will face increased resistance towards the development of its very own cryptocurrency. International perspectives on this economic intervention remain split considering the function of the Petro token to allow international trade remained limited and