The central bank of Iran has officially banned crypto from being used by banks and other financial institutions. This comes as a huge blow as exchanges will no longer be able to work alongside banks and unable to even open accounts. There have been a number of reasons cited for this decision including the suspicion of crypto use becoming rampant in the illegal money laundering schemes in operation in the country.
“In a meeting with the board of directors of the Post Bank of Iran on digital currency based Won blockchain, the necessary measures for the pilot implementation of the country’s first digital currency were set out by using the country’s elite capacity. A pilot model for review and approval will be presented to the banking system of the country.”
Banks have also been prohibited from promoting cryptocoins like bitcoin as the state attempts to unify all monetary exchange using the Central Banks as the primary hub. In a effort to centralize monetary exchange the country also tied its exchange rates with those seen in the open market to align the bank with international standards.
To conclude, Iran becomes the latest country to place a ban on bitcoin. The ban involves warnings sent out to all banks against the use of cryptocoins like bitcoin. Some have noted the incoming sanctions which may be placed by the US on Iran have become a catalyst for the current decision as the country aims to stabilize its fiat currency. Currently a plan is in the works to help regulate cryptocoins in the country but the ban remains enforced for the foreseeable future.
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