We already had discussed the possibility of Iran using Bitcoin as an Option for Economic Breakthrough in our Bitcoin News section.
Following the recent tension between the Iranian government and the American government, the country has been in an economic recession in the online sector of trade. This has forced the Iranian government to reconsider Bitcoin as a payment option for their transactions and to provide good infrastructures for its use.
The difficulties arise from the fact that most of the tools that enable smooth revenue acquirement online are managed within the jurisdiction of the USA, making Iran, a dependent country suffer from sanctions.
As an alternative payment system, the government has planned new infrastructures for Bitcoin. This is an indirect measure to drive the economy to the top.
Why Iranian Government Considering Bitcoin
The United State of America regulation spearheaded the decision to ban Iran from using online payment systems such as PayPal. The Office of Foreign Asset Control act grants legislation to the government to impose control on transactions and assets within the jurisdiction of the United States of America. Paypal is one of the renowned systems within its jurisdiction and it is therefore subjected to its manipulation.
The sanction is reported to have affected the economic performance of the country such as the shipping industry and the financial sector. The urgent need to get rid of this economic infection is to subscribe to a substitute with a unique feature of decentralization. Bitcoin is not controlled and it announces its presence in any environment that welcomes its function.
As it stands, Bitcoin is illegal in Iran according to the IT Director of Iran’s Central Bank, Naser Hakimi. He clarified this in 2015 that the Article 2 of Iran’s ‘Money and Banking Act’ prevent the operation of Bitcoin in the country due to the legal tender definition. However, there are platforms that exchange Bitcoin in the country making it difficult to believe whether Bitcoin is actually legal or not. Making all other things equal, the bottom line is that Iran has considered the use of Bitcoin as an economic driven force.
The consideration of this digital currency was not a decision made within this week. About three years ago, the Deputy of Iran’s’ Regulatory Authority, Saeid Mahdavian at the National Cyberspace Center, hinted that Bitcoin would be regulated in 2015 but it did not happen.
Iran Government Has Already Done Research on Bitcoin
The decision to regulate Bitcoin and provide favorable infrastructure to its users was not made overnight, but through a long period of analysis and well research. The government is much confident that Bitcoin can play the trick with many economic benefits.
“The ministry of communications and information technology has already conducted a number of research studies as part of efforts to prepare the infrastructure to use Bitcoin inside the country,” said Iran’s Deputy Minister of Information and Communication Technology, Amir Hossein Davaee.
The cryptocurrency has its own downside, and it is expected that good regulations will make its use a smooth one.
Economically, the central bank has a way of regulating money supply in the economy for specific reasons which can shut down the economy if not done properly. Bitcoin activities are another form of money creation and can affect money supply within the blink of an eye. Amir Davaee pointed out some of these effects and called on the central bank to set up rules to supervise them.
Bitcoin is a serious business now, and the Japanese government confirmed this by accepting Bitcoin as a means of exchange. Some colleges have begun to accept Bitcoin as a means of payment and this shows the level of its universal acceptance.
The plan of Iran to make Bitcoin a mode of online payment is good news not only for the users in Iran who have been waiting for this day. It is a great achievement for the Blockchain family as well.