Nayib Bukele, the President of El Salvador, did not only create history for the nation by accepting cryptocurrencies as legal currencies, but that decision also influenced many other leaders across the globe. Now, following in the footsteps of the El Salvador President, Iran is gearing up to legalize crypto throughout the nation.
Hassan Rouhani, the President of Iran, declared his desire to legalize crypto in the country soon. The President made this announcement during a governmental Economic Coordination Board Meeting.
Moving on to the legalization of crypto in Iran, Rouhani requested the nation’s Government officials to begin working on the regulatory framework to regulate currencies such as Bitcoin across the nation. This provision of the set of regulations and their clear message to the local public is going to help in the reduction of illegal cryptocurrency trading in the nation.
In the previous year, Iran also took actions to approve fifty Bitcoin mining farms to operate in the nation. This year, however, the country has been facing a shortage of power, and the government was forced to impose restrictions on Bitcoin mining for an uncertain amount of time. Taking into consideration the drawbacks of accepting the cryptocurrency, Rouhani requested the Economic Coordination Board to closely monitor all the transactions strictly in order to lower risks, and also to make adoption of the cryptocurrency secure.
The incentive behind Iran recognizing cryptocurrencies is, in a way, is comparable to that of El Salvador. Iran is also preparing to boost its currently declining International Trade, which is gravely impacted by the Countering America’s Adversaries Through Sanctions Act (or CAATSA) enforced by the United States on the nation, causing American companies to avoid doing business with the country.
As US Dollars are also restricted from use in the nation, it is impossible to connect with the international banking system for the nation.
Taking into account these serious dilemmas of the nation’s economy, Iran is now preparing to allow for the use of cryptocurrency to solve a plethora of its economic problems.