Jan. 31, 2019– Mary Greeley News – According to the local newspaper Tehran Times, Iran is holding talks with 8 countries to use cryptocurrencies in financial transactions.
The decision to hold the negotiations was taken as a means to overcome difficulties resulting from US-led sanctions against the Middle Eastern state.
The sanctions were imposed by president Donald Trump in 2018 and place restrictions on Iran’s gold and other metals trading prospects but more importantly, Iran’s oil exports are heavily limited.
The news of the negotiations comes a few days after Iran is reportedly planning to launch a new state-backed cryptocurrency. It is still unclear whether the transactions with the other countries involved in the negotiations would involve the new Iranian digital currency.
The newspaper reported that representatives from South Africa, France, Russia, UK, Switzerland, Bosnia, Austria and Germany went to Iran to negotiate the terms of a potential agreement.
By holding talks with Iran to reach crypto-based trading agreements, the above-mentioned states show a willingness to circumvent the sanctions to continue doing business with Tehran.
It is no surprise that Russia is included among the list of countries willing to negotiate deals revolving around the technology. In fact, Russian president Vladimir Putin is planning to establish a Eurasian Economic Union backed by cryptocurrencies. Like Iran, Russia is attempting to evade US-led sanctions in place since Moscow’s annexation of Crimea in 2014.
A document released on the website of the US Central Intelligence Agency shows that the Islamic Republic outstrips the United States in terms of reserves of foreign exchange and gold.
The document known as the World Factbook shows that Iran ranks 19 with $133.7 billion in forex and gold reserves until December 31, 2016. This comes as the US ranks 20 with $117.3 billion.