An Overview of the Iran-USA Conflict: Where Does Iran’s National Cryptocurrency Stand?

A lot has been said and done about the Iran-USA conflict that has reached its zenith under the Trump administration.

To give you a brief timeline of the conflict escalation, back in May 2018, Trump pulled out of the Joint Comprehensive Plan of Action (JCPOA), which was put in place by the Obama administration, in exchange for Iran toning down its nuclear power, to adhere to the standards set out by International Atomic Energy Agency.

Since then, US-Iran relations have been quite strained, and Trump was quick to reintroduce sanctions on Iran.

US Sanctions On Iran Pushed The Country To Launch Their Own Cryptocurrency, and they finally decided to go ahead with the launch of a domestic cryptocurrency, that would help them work their way around the sanctions imposed on them, which was strangling their economy.

Alireza Daliri, on behalf of the Directorate for Scientific and Technological Affairs of the Presidential Office, released a statement to ISNA, a local news agency.

“We are trying to prepare the grounds to use a domestic digital currency in the country…This currency would facilitate the transfer of money (to and from) anywhere in the world. Besides, it can help us at the time of sanctions”

The developments escalated with full power and the country was finally able to launch their national cryptocurrency. However, Iran’s Efforts To Evade Sanctions Via ‘Illicit’ Use Of Crypto Did Not Fool the FinCEN. The U.S. Financial Crimes Enforcement Network (FinCEN) agency recommended tracking IP login activity from Iran-based entities by acquiring

“technical details such as IP addresses with time stamps, device identifiers, and indicators of compromise that can provide helpful information to authorities.”

On November 11, despite the ongoing developments, Iran Finalized the Development of Rial Backed National Cryptocurrency, and it was also reported that Iran Partnered With Russia to Develop its Crypto Economy.

A recent bill, titled HR 7321, was introduced by United States lawmakers in the House of Representatives. It proposes imposing another round of sanctions on Iranian financial institutions and the development and use of the national digital currency.

The bill, called “Blocking Iran Illicit Finance Act”, aims at deterring money laundering and funding of terrorism related to Iran. This act calls for a ban on any and all transactions, financing or other trade activities related to an Iranian digital currency. It will also impose sanctions on foreign individuals who involve in any of the above.

It is difficult to assess at the moment how deeply this will impact Iran’s plans with the development and circulation of their national cryptocurrency.

We expect further Iran-Russia collusion to enable Iran’s crypto economy to flourish and actually help the country survive amidst the barrage of sanctions.