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Iran looking to put cryptocurrencies on a leash

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Islamic Republic of Iran has flipped stand on cryptocurrency. Apparently the previous understanding was mischaracterised by the press.

Control and Regulate Crypto

About 2 weeks ago, TechRasa reported that Iran was considering to issue a local digital currency, a cryptocurrency consortium with niche countries and also regulating the already existing cryptocurrencies. International Business Times went on saying that half dozen contenders in Iran were eyeing to bring the country its first generation of Initial Coin Offerings (ICOs).

Given the current international sanctions on Iran, cryptocurrency comes as a natural contender with PayPal, MasterCard and Visa being forbidden. Further, the legal tender has plummeted to an all-time low against the dollar. Crypto might very well be a way around the situation.

However, it has come to fore that the Central Bank never recognized Bitcoin as legal tender and also that there was no intention of actively facilitating Bitcoin transactions.

But, what about the Local Crypto?

The bank cited the wild fluctuations and pyramid scheme predatory tactics that have made cryptocurrencies highly unreliable, risky and unpredictable. In light of the same, the Central Bank is actually looking to control and prevent digital currencies in Iran.

However, these developments do not necessarily translate into a ban on ICOs. Also, there is plenty of referential evidence pointing that the populace of the country is very much interested in cryptocurrencies even if their government seems to be headed in the opposite direction. Further, not all hope is lost, as the country’s technology minister confirmed about discussions on a state-backed local crypto-currency

After further warning about the “high risks of making investment in” cryptos such as bitcoin, saying Iranians might lose “their financial assets” as a result, “Iran’s [Ministry of Information and Communications Technology (ICT)] Minister Mohammad-Javad Azari Jahromi also declared on Wednesday that Iran’s Post Bank is working on a locally-developed cryptocurrency, which needs to be tested by the ICT ministry.”

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