Iran Annouces National Cryptocurrency To Evade US Sanctions

Bancor Network, the decentralised coin exchange (DEX), has provided comment  following the recent announcement of an experimental ‘indigenous cryptocurrency’ by the Iranian central bank, in response to economic sanctions imposed by the US.

“It is unsurprising that countries like Iran and Venezuela are opting for central bank digital currencies (CBDCs) following US sanctions. These national governments need ways of managing their economy without relying on the dollar. The adoption of CBDCs can provide a dynamic boost to local economies by retaining and maintaining value.” – Says Galia Benartzi, Co-Founder of Bancor Network.

“The problem with creating commodity-backed national currencies, is that you need to cap the issuance, or have a process of continual measurement of the underlying asset. We urge them to simultaneously create reserve systems that are transparent in nature, easily verifiable on the blockchain and most importantly, based on real demand in international markets. – Galia concluded.