Will Bitcoin and Crypto Save Iranians? Elite Military Group Now a Terrorist Organization
The Iranian Elite Military Group has
now been classified as a terrorist organization, and with a crucial government
arm coming under scrutiny from the international community, Bitcoin and crypto
could be the savior of Iranians in this tough period.
Trump Declares Elite Iranian Military Force As A Terrorist Organization
President Donald Trump on Monday announced that the US formally recognizes Iran’s Islamic Revolutionary
Guard Corps as a terrorist organization. Some members of the administration
revealed that the move came about following some destabilizing behavior
portrayed by Iran in the Middle East.
This latest classification could hit
the Iranian economy even harder. The country has already been removed from the
SWIFT network, making it hard for banks and financial institutions in Iran to
carry out cross-border transactions.
At the moment, Iran is in discussion
with eight other countries to carry out financial transactions using
cryptocurrencies. The state is in talks with Switzerland, South Africa, France, the United Kingdom,
Russia, Austria, Germany, and Bosnia, as they look to use cryptocurrency to
circumvent the ban placed on them by SWIFT.
The sanctions placed on the country
has seen both the government and its people turn to cryptocurrencies. Last
month, a gold-backed cryptocurrency dubbed “PayMon” was launched in the Middle Eastern nation. The cryptocurrency was
initiated by four banks in Iran alongside a blockchain startup Kuknos Company.
PayMon would be used in tokenizing the banks’ assets and properties and is one
of the ways banks in the country are coping with the financial sanctions placed
Crypto and Bitcoin Could Save Iran
It is reported that Iran is currently
developing a state-backed cryptocurrency, the Crypto Rial. The sovereign
cryptocurrency would be supported by Iran’s gold reserves, with the government
announcing that it would mint over a billion tokens. To boost transparency in
the system, the government announced that users would be able to see the gold
reserves themselves as a video link to the footage would be made available at
Earlier this year, reports surfaced that Iran is inching closer towards the launch of
its state-backed cryptocurrency. The crypto-Rial is expected to be launched in
phases, first as crypto backed by their fiat currency. This would help
facilitate transactions between banks and other crypto institutions in the
country. The coin would later be accepted as a means of transaction amongst the
Aside from sanctions and other
embargoes, Iran is becoming an excellent destination for cryptocurrency miners
due to the cheap electricity available in the country. The electricity cost is
as low as $0.006 per kilowatt-hour and has helped lure foreign miners to the
state. There is even rumors that miners in countries like China are currently
looking to move to Iran due to its crypto friendly nature.
The Central Bank of Iran released an early draft of its cryptocurrency regulation, reserving its
earlier ban on the use of digital currencies in the country. The apex bank,
however, introduced some restrictions to the use of cryptos.
The regulation is targeted at
organizing the cryptocurrency activities in the country while allowing traders
and investors to invest in the crypto market. The Iranian central bank now
legally recognizes global cryptocurrencies such as Bitcoin.
With the sanctions on the country
piling up, Bitcoin and crypto could be the savior of Iranians at this crucial
point in their history.