According to a recent report conducted by Al Jazeera, Iran is under works of launching their own stablecoins as a means to get around the US sanctions currently placed on them.
The digital asset is expected to be announced during the Electronic Banking and Payment Systems conference starting on January 29th in Tehran.
The theme for this years conference is going to be “blockchain revolutions.”
“Iran’s cryptocurrency is expected to be rolled out in phases, first as a rial-backed digital token, to facilitate payments between Iranian banks and other Iranian institutions active in the crypto space, and later possibly as an instrument for the Iranian public to pay for local goods and services,” Al Jazeera reports.
The cryptocurrency is rumored to run on a private blockchain, although it will be based on either Ethereum, Hyper-ledger or even something currently unknown to most.
During November of 2018, Iran’s economy took a nasty hit when certain banks were prohibited from SWIFT, a Belgian-based worldwide messaging system that facilitates global payments.
Countries barred from utilizing SWIFT will not be able to pay for imports or receive payments from exports, crippling them financially, and having to rely on other alternative means for transferring money.
While this may not lead towards payments being facilitated between Iran and other countries directly, the state-backed cryptocurrency could lay the groundwork for Iran to join a blockchain-based international payment system that could become an alternative choice to SWIFT.
At the moment, no official confirmation has been made of active participation between Iran and other nations for this area.
Iran is another country that’s joining the cryptocurrency space due to sanctions that have been placed on its borders due to conflict between the US. Venezuela is another country that involved itself with cryptocurrency by creating the Petro coin even if the results haven’t been that stellar for the country at the current moment. Even so, it’s going to be interesting to see the upcoming results.