After the Internet, cryptocurrency is the beginning of another technological revolution that has been evolving over the last ten years. Developed countries of the world have started the process of trading with cryptocurrency. In addition, the central banks of those countries have started using cryptocurrency as a medium of their transactions. But there are many countries in the world where cryptocurrency has not yet started to be used, there are some countries who have declared it illegal in their country. Bitcoin and other cryptocurrencies have not yet been legalized in Bangladesh. Iran was added to the list last April. But a big initiative with cryptocurrency in Iran started long ago.
Banks in Iran have banned cryptocurrencies. The biggest reason behind this was money laundering. Money laundering is a process by which money earned illegally, such as drug trafficking, terrorist activities, or other criminal activities, is brought under the law and carried on legally.
The state currency of Iran is the Iranian rial. Real's condition has not been good for a long time. The value of the rial has fallen sharply against the US dollar since September 2017. About 60 percent is reduced. Due to the weakening of Iran's monetary system, many people there began to buy dollars on the black market, and after a while, the rate of purchase increased significantly.
Last year, the value of one dollar in the Iranian currency was about 60,000 Iranian rials. But since then, as the Iranian government has taken steps to protect its currency, its value has continued to fall against the dollar. At least now the exchange rate has come down to 42,000. In other words, the price of the Iranian rial has fallen by 30 percent in less than a year. The figure is from last April.
Iran's monetary system is tightly controlled by the central bank. So with the weakening of the monetary system, they now, with the help of the police, looked into whether any illegal activities were taking place in the places where money was exchanged, and took the necessary steps to eradicate them. The ban on cryptocurrencies was extended to banks and other businesses.
As the Iranian rial depreciates against the dollar, the Iranian government realizes in advance that illegal transactions through virtual currencies may be easier. And since there is no government control over the monetary system, such as Bitcoin, and the central bank cannot control any transaction, the government has announced that no cryptocurrency transactions can be made from Iran.
The Iranian president also did not comment on cryptocurrency. When President Hassan Rouhani is elected in 2017, he promises that during his tenure he will pay special attention to the job market and try to create enough jobs in Iran. He will also prioritize the downturn in Iran's economy. But no such development was noticed in both directions. This led to a movement against the current government in Iran earlier this year. The protests took place almost all over Iran. Hundreds of people were injured and about 25 were killed when the Iranian government tried to quell the protests.
So far, the Iranian government has not made any regulations on Bitcoin and other cryptocurrencies. Their position on this issue was vague. But Iran expressed its views through a complete ban on cryptocurrencies. However, cryptomedia, which promotes financial transactions such as bitcoin, is reporting that the future of bitcoin in Iran is very bright. This is because if the amount of trade from Iran to different countries is done through cryptocurrencies, it will be possible to overcome much of the problem that has arisen in the exchange of foreign currency through transactions with the big traders of international bitcoins or other digital currencies.
But Iran has turned to cryptocurrency again after receiving a major trade threat from the United States a few days ago. Both Iran and Russia are pushing for the use of crypto to reduce their dependence on the US dollar. Because from the United States, Iran has to go through various sanctions and restrictions at different times. This has affected their monetary system as well as the foundation of their economy. In such a scenario, Iran's domestic economy could remain stable despite the US ban on using digital currency for international transactions.
So Iran is leaning towards cryptocurrency again. Iran has already taken steps in this regard. They do not want to depend on the dollar for oil exports. Iran has announced that oil will be exported through cryptocurrency. Note that many hotels in their country are going to be booked through crypto.
However, Iran's central bank is still holding back on some of the issues under previous sanctions. They are starting to use cryptocurrency and they have already started working on how to use cryptocurrency at the national level. The principle of using cryptocurrency in Iran is - they are not legalizing the use of these digital coins for the general public right now. Since there are different theories about crypto, previously only crypto would be used for direct transactions between banks. The entire transaction will be under the supervision of the Central Bank.
After using it in this way, while gradually gaining some experience with the use of digital coins, work will be done on how the common man can use this currency in a legitimate way. It is hoped that this new addition will be very popular in the world of Iranian transactions. There are also announcements from Iran that they are creating their own cryptocurrency. Only time will tell what will happen to the cryptocurrency in Iran.
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