Global Crypto War Is Heating up - Iran Next in Line With Its Own Gold-Backed Coin
Control of the U.S. dollar and the global financial system that depends on it gives the American government an incredibly powerful tool in shaping international affairs. As such, it is not surprising that its geopolitical rivals around the world will try to exploit the invention of cryptocurrency to take the USD down a peg. The latest example comes from Iran that now wants to create a digital token backed by gold.
Central Bank of Iran Approves Gold Backed Token
On Saturday, July 13, Tehran-headquartered Mehr News Agency reported that the countrys first cryptocurrency issued under permission of the Central Bank of Iran (CBI) is set to be unveiled. This was according to an announcement by an official from the Iran Chamber of Commerce, Industries, Mines and Agriculture, a non-profit institution established to facilitate economic growth and development in the country.
The official, Shahab Javanmardi, said that the indigenous digital coin will be mined by a consortium of private Iranian IT firms in accordance with the agreement of the CBI and also called on the government to issue regulations for the countrys crypto mining sector. He claimed that the Iranian cryptocurrency is backed by gold but its function is similar to foreign rivals. Furthermore, he revealed that the domestically encrypted money is to ease optimal use of Iranian banks frozen resources.
The Shrine of Fatima Masumehs gold dome in Qom, Iran
Iran has reportedly been preparing to launch its own cryptocurrency for a long while now. Last July state-controlled media also claimed that a large number of homegrown Iranian tech companies were developing such a project in cooperation with the CBI. At the same time, the Iranian government has also made it harder on its own citizens to mine and trade cryptocurrency, with limited success.
Tools for Bypassing American Sanctions
Cryptocurrencies sanctioned by the government or even directly issued by central banks are not a new concept. Various countries around the world have floated the idea or claimed to have tested it in some capacity. Sweden, for example, is known to be probing the creation of an e-krona, its version of central bank digital currency (CBDC), with the help of private blockchain development companies. However, while the Scandinavian country is considering the move due to its ability to support a transition to a cashless society and other economic factors the Iranian goal for its own crypto is very different.
By imposing economic sanctions on other nations the U.S. can deter them from taking actions it disapproves of or even brings an enemy country to its knees without firing a shot. Iran has been on the receiving end of various American sanctions f ...