An Iranian cryptocurrency seems about to hit the cryptocurrency market. Iran has announced its intentions of developing its own cryptocurrency. This is following Venezuela’s incursion into the cryptocurrency market.
Iran’s Ministry of Information and Communications Technology, Mohammad-Javad Azari Jahromi, tweeted Wednesday that a cryptocurrency was under development by the Iranian state run Post Bank. Is this the beginnings of a new currency trend?
Venezuelan ‘Petro’ Cryptocurrency
We recently reported on the Venezuelan ‘Petro’ cryptocurrency, created in response to the country’s official currency losing much of its value during its recent spate of political upheaval. The Petro, backed by the country’s oil industry, raised over $735 million. Iran’s initiative is very similar. “If Venezuela can do it then why not Iran?” is the question it asked itself. And it has decided to act on it!
Many believe that an Iranian cryptocurrency is sure to be used for money laundering. The Iranians deny this, and only the future will tell the truth. For now, there is no regulatory reason why Iran should not be able to create its own cryptocurrency.
Beginnings of a Cryptocurrency Bandwagon?
Let’s hope not! There have been reports regarding cryptocurrency mining efforts by North Korea. It sees cryptocurrency as a means of the country avoiding sanctions. Many banks worldwide have been discussing the potential of cryptocurrency. Among those that have actually taken steps are China, Singapore, and Russia along with some other countries. Their benefit is that cryptocurrency transactions are instant, secure and cannot be recalled.
According to US tax laws, Bitcoin is regarded as property, not currency. Therefore if you sell Bitcoin at a profit, you are a due property tax on it. Crazy? You bet! But it’s just one example of how our lawmakers are technology-deficient, and so cannot be trusted to make the right decisions about technology related issues.
Bitcoin Still the Leader
Bitcoin is still regarded as being the leader but for how long? Is the value of a currency controlled by supply and demand or by the banks? That seems to answer itself, although who knows? Hardly a good basis for an international currency unit. So, yes, time will tell. Iranian cryptocurrency may be a good beginning for them, but then again it might well threaten the future of this new investment trend.
