Iran Sanctions Push People Turn to Bitcoin to Get Money Out

Iranian building against the blue sky

Nicholas Maduro tried it in Venezuela, Kim Jong-un tried it in North Korea – now Hassan Rouhani can start experimenting with Bitcoin and cryptocurrency, as the country prepares for new sanctions sanctioned by the US against Iran.

This was expected for some time, but the decision by US President Donald Trump yesterday to withdraw from the 2015 agreement to stop Tehran’s nuclear program caused shock waves in the country, triggering fears about the economic crisis caused by harmful sanctions that are expected to be reduced export of oil and other goods.

However, expecting that Obama’s deal will fall, Iran began developing an experimental local cryptocurrency for some time last year.

Iran’s youngest minister Azari Jahromi told the state news agency IRNA that in April a “digital currency in the domestic development” appeared after a statement he published on Thursday in Twitter, where he said that the state Postal Bank worked with local experts on experimental cryptocurrency.

Economists and currency experts watched with interest, when this year Venezuela presented its cryptocurrency, supported by the state – “Petro“.

However, the country’s plans were complicated by Trump’s ban that US citizens buy Petro, allowing US Secretary of Treasury Steven Mnuchin to use any necessary rules to ensure order.

Director for Strategic Threat Development in the registered future Priscilla Moriuchi said:

“Petro will struggle to exchange for a hard currency, such as the dollar or the euro, and this will limit its attractiveness for investors and users.
Iran is likely to experience some of the same obstacles if it decides to create its own cryptocurrency with a stock of oil.”

But not only the Iranian government looks at Bitcoin as a way to circumvent Iran’s sanctions and get cash from the country.

One person in Iran, who wanted to remain anonymous, is trying to transfer money through Bitcoin to his son in North America.

His son said: “With closed exchange offices, sanctions and rial, like crazy, it seems a good idea to use Bitcoin. I know that there are several people who sell and buy cryptocurrency in Iran with LocalBitcoins”.

Currently, 17 people sell Bitcoin through the site LocalBitcoins, which corresponds to buyers for sellers in countries and cities around the world.

He added: “At the moment it seems that Bitcoin is the only way to get money from the country, so I’m sure that more people will be inclined to use it, but with the boisterous inflation of Iranian rial many people will not be able to afford it.”

The price of Bitcoin has increased over the past 12 months, reaching almost $20,000 per coin in December of last year, and then fell to less than $10,000.

Currently, one Bitcoin is traded for about $9,300, but the trade remains extremely volatile. The fees and charges associated with the bitcoins trade also increased along with the price.