the The value proposition of crypto currencies like Bitcoin, revealed to be illustrative of the example of the Iranian financial sector. It is almost amazing how accurate move is safe, the crypto-Narratives of theory in practice. The latest developments in the country.
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30. January 2019BTC$3.457,96 0.84%Facebook Twitter LinkedIn xing mail
in September, the inter-Bank Organisation SWIFT had been excluded as a result of political pressure from the United States a large part of the Iranian commercial banks and the Central Bank of Iran CBI from the network. This happened in the context of increased U.S. economic sanctions against the Islamic Republic. BTC-ECHO reported.
The consequences were fatal. As a result of SWIFT handling of the global financial sector has on the transaction, a Quasi-monopoly, were Iranian financial houses barely able to process international transactions for their customers. Effective sanctions can be.
Bitcoin rushes to the aid
The story sounds, however, as a crypto-Use-Case written. Because of the Peer-to-Peer nature of Bitcoin & co. means de facto independence from Central institutions and freed from the political calculus as the US.
In the Wake of the events of September last year, the Iranian leadership was apparently forced to consider Alternatives to the traditional interbank market in the country. It didn’t take long, and it was recognized even at the top of the potential of crypto-currencies. Since then, research on the introduction of a national Central Bank crypto-currency.
And that, as current developments show clearly with emphasis. Because, as it became known, leading currencies on the top trading authority, the Islamic Republic’s talks with representatives from eight countries on possible use cases for Crypto. Its declared goal is the circumvention of the American sanctions against the country.
“Iran begins a new Chapter of the international money traffic to bypass US-led sanctions, and negotiated about the use of crypto-currency in Financial transactions with eight countries”,
the chief of the authority, Mohammad-Reza Modoudi told Tehran Times. And further:
“representatives from Switzerland, South Africa, France, England, Russia, Austria, Germany, and Bosnia have visited Iran to lead talks on the subject.”
Meant for the use of state crypto-currencies as an alternative to the SWIFT System is likely to be.
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Iranian Central Bank allowed Bitcoin trading
But this is not the only crypto-related developments in the middle Eastern state; also on the part of the Iranian Central Bank, the Central Bank of Iran (CBI), there are Updates. For some time it is working on a legal regulation of crypto-currencies. A first version has now been released. So far, private crypto-currencies such as Bitcoin, while not expressly forbidden, like they were seen in the economically troubled country, but also. From the published Draft clear that Bitcoin is clearly legal. Iranian citizens are not allowed to own the crypto-currency, no. 1 and act. However, The use as a means of payment remains prohibited. This is from an article by AlJazeera.
in Addition, the accumulated crypto-assets exceed the equivalent of 10,000 Euro. The aim of this measure is to prevent the excessive outflow of Liquidity from the weakening of the national currency, the Rial.
With the carrot and the stick
From the latest regulatory paper of the CBI, we may draw a number of lessons. So self-governments of authoritarian States such as Iran seem to reflect the need of the population to financial self-determination bill. Finally, Bitcoin is explicitly allowed. Nevertheless, there is still legal recourse to prevent the use of private currencies. In this case, by using the ban crypto-currencies as a medium of exchange, and the nominal restriction of the assets that citizens in Bitcoin & co. are allowed to trade.
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Here closes case: Both can be, in practice, difficult to prevent. By a sufficiently repressive penalties for violations is expected to be a compliance with the law, however, to reliably enforce.
