The economic crisis in Iran that has been impacting the economy of the Western Asian nation for about 6 months now doesn’t seem to come to an end. In the light of this situation, many internet friendly citizens of the country have now turned to cryptocurrencies. Iranians are holding on to digital assets as they cannot be devalued by the government.
The increasing economic sanctions on Iran by the United States have triggered a dire economic crisis. The effects of which are now being felt by the general population.
Iran is reeling under the pressure of sanctions by the US owing to its purported state-sponsored terrorist activities as well as its notorious Nuclear Program.
The sanctions have led to a free fall of the value of the Iranian currency Rial over the past six months.
In what appears to be a move similar to what Zimbabwe did 10 years ago, the Bank Markazi, or the Central Bank of Iran, is now considering removing a few 0’s from Rial’s value. Presently, USD 1 equals 110,000 Iranian Rial.
This move by the government has worried many Iranian citizens. And quite rightly so, as history would show such a step has never benefited the economy of any country.
Consequently, many Iranians are turning their attention to the world of digital assets in an effort to hedge against the value of the falling currency. Cryptocurrencies offer to them what Rial can not- better value and protection against the national crisis.
As per reports, the growth of cryptocurrencies in Iran spiked after the United States pulled out from its nuclear agreement with the nation. The re-imposition of sanctions resulted in protests against the incumbent government and this subsequently led to digital currency trades reaching an all-time high in December 2018.
The US-led sanctions along with the decline in oil trade have resulted in hyperinflation of the Rial currency. Hence, moving to cryptocurrency is the only safe bet for Iranian nationals right now.