The past few months have not been easy on Iran following the sanctions against it from the United States of America. Iran has recently put forth the information regarding the formation of its own virtual currency recently. This action is largely taken in response to the sanctions imposed against it by the USA. According to the sources, the cryptocurrency of Iran is backed by the national currency of Iran, that is, Rial. Virtual currency is based on the hyper ledger fabric technology. The virtual currency of Iran is based entirely on the decision of the Central bank of Iran. As a result, it is not possible to mine this currency; also it would get difficult to get a hold of the transaction records of the same.
Informatics Services Corporations has gone onto reveal that this new development will come to be of use to the banks of Iran as well as companies using cryptocurrency. In its most initial phase, this form of payment will be used by banks to sort out transactions amongst themselves. In phase two, it would be used at the local level as the means of day-to-day transactions. A major reason for the leader of Iran giving the permission for this is to free the country from the burden of the sanctions of the United State of America. According to the authorities of Iran, it is possible that the confusion regarding the eventual acceptance of the popular cryptocurrencies like Bitcoin and Ethereum will be cleared by the end of September. Right now, the citizens of Iran are not permitted to trade in the cryptocurrencies and according to the law; those who disregard this law will be punished to an intensive degree. However, the citizens are not abiding by these laws and continue to invest in the cryptocurrency, that is the popular cryptocurrency, Bitcoin as well as Gold. This increased activity in Bitcoin is due to the sanctions imposed on Iran by the USA. In the underground markets of Iran, the prices of Bitcoin are reaching the skies. A lot of money of the citizens of Iran has been spent in the breaking of laws by buying Bitcoin.
It is not just Cryptocurrency that can help Iran to fight the battle against the sanctions of the United States of America. Iraq is also looking at a battle in court against the decision of the Trump government. As Iran prepares a battle against one of the strongest countries in the world, there are other countries that have promised support in this battle against the United States of America. However, the significant decline can be noticed in the value of the national currency of Iran following the sanctions imposed by the government of Trump, it is yet to be seen as to what will be the outcome of the measures that are being taken by Iran to combat this economically challenging situation.