National cryptocurrency won't help Iran circumvent sanctions - financial expert
Tehran, Iran, Oct.24
Circumventing sanctions through crypto currency isn't the way to go, the Managing Director of Sepehr Saderat Financial Group Behzad Khodarahmi believes.
Commenting on the use of crypto currency in Iran to circumvent the looming US sanctions, he told Trend that digital currencies cannot belong to a special country.
"The philosophy of producing these crypto currencies is that there is no definite base and border. In fact, this is the main reason for its popularity. These currencies are not affiliated to any country and no central bank supports them," he said.
"Circumvented sanctions by such currencies, is impossible. We need to have exchange traders for entering and working with crypto currency, while international money exchange traders are enforcing stricter laws every day, and if the international community or a super power bank to work with a country, then those traders will obey,” he said.
Earlier, Iran has unveiled plans to launch its own national crypto currency, partly in response to economic sanctions imposed by the US. A domestic digital currency is seen as a solution for the country being cut off from international payments networks, with the technology facilitating the transfer of funds around the world.
"The volume of transactions with crypto currencies is very low, while the price fluctuation of such currencies is high and sometimes there is no economic justification to use them for financial transactions,” said Khodarahmi.
"The other thing is that they still do not become popular in international exchanges, especially for oil,” he said.
Referring to the creation of a national crypto currency by the government he said that the other countries have experience in this field, and figured out that such currencies cannot be expanded so much so that they cannot be developed beyond the borders of the country of origin.
“We need them to be recognized internationally by international exchange traders, although it can be used in the form of bilateral or multilateral agreements,” he noted.