In recent years, companies have been creating their own cryptocurrencies to either offer something new to the public or make use of the underlying blockchain technology to further company projects. Even central banks have been showing interest in creating new tokens. Now, Iran has just announced that it has developed an experimental local cryptocurrency only days after its central bank banned the trading of these digital coins.
The Islamic nation has deemed cryptocurrency illegal because of threats of money laundering and fraudulent activities surrounding crypto-transactions. This apparently did not affect it enough to think twice about the development of the new coin. Minister of Information and Communications Technology Mohammad Javad Azari-Jahromi said that the project will remain unaffected.
As quoted by news agency – IRNA – he said:
“The central bank’s (ban) does not mean the prohibition or restriction of the use of the digital currency in domestic development.”
Iran has made many controversial calls about cryptocurrencies recently. First of all, Bitcoin and Ethereum have both been doing well in terms of being accepted by companies all over the world. Iran does not seem to share the same sentiment, however, and just banned these entirely. Secondly, Iran’s central bank has been experimenting on a cryptocurrency despite its own stance against digital tokens.
Lastly, the development of the cryptocurrency has come from quite a rebellious outlook. Rumors of a new currency being developed have surfaced as early as February 2018.
In this regard, Iran has outmatched even Venezuela in terms of making a controversial decision to develop a new digital currency. Venezuela was known to develop a new coin despite strong objections coming from its own legislation. With Iran, it is going against not only its own rules, but against economic sanctions set by the United States.
Due to Bitcoin’s decentralized and transparent nature, it is difficult to use this for money laundering, avoiding sanctions, and similar activities. However, creating a new, more anonymous coin may just do the trick. This is the impression the new crypto-project has been giving off to the public, and one that does not exclusively belong with Iran.