Iran’s Plan of Launching its own Cryptocurrency
Initially, it was thought that Iran is trying to come up with a central bank-issued digital currency (CBDC). It would have been a Rial currency backed cryptocurrency, which could have created an alternative to SWIFT. It has become important for Iran to come up with an alternative to SWIFT as the sanctions imposed upon the country don’t give access to the global banking settlements system.
The sources who said that Tehran is planning to come up with its own Government-backed crypto are not yet sure about the country’s real plans. It is still not known whether the country will use the cryptocurrency for local uses (including consumer payments) or go forward with large scale implementation.
A blockchain developer at Radfa firm in Iran said:
“They certainly can’t replace the likes of bitcoin due to their centralised nature, but their existence is harmless… Even as [CBDCs] may never find widespread everyday use among the general public, they may be able to offer some new features to startups and developers that had to work with centralised bank APIs before them.”
Reports say many countries are coming together to create a blockchain technology-based method for replacing SWIFT mechanism. It would help them bypass international economic sanctions, which are generally used by economic superpowers for restricting international fund access.
One of the most viable solutions includes an agreement signed among multiple countries including Russia, Iran, and Armenia. This agreement is called Chainpoint blockchain agreement, which reportedly develops a blockchain based method for replacing SWIFT. Russian Association of Crypto-Industry and Blockchain, Yuri Pripachkin, said:
“According to our information, an active development of an Iranian version of SWIFT is currently underway.”
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