BitcoinSpotlight

U.S. Preventing Iran’s Access to Cryptos and Bitcoin Mining

Recently, Iranian assistant minister of industry, trade and supply, Saeed Zarandi openly alleged the U.S. Congress for restraining the progress of cryptocurrencies in Iran. Particularly, he mentioned that efforts were laid by Congress to stop Iran’s access to bitcoin mining and cryptocurrencies.

While sharing his thoughts, he exclusively blamed Congress for working against the interests of Iran. While stating the reason, Zarandi elaborated the mindset behind Congress’s efforts.

He clarified that cryptocurrencies are considered a weapon to evade sanctions and money laundering by Congress. According to him, that explains why Congress was so keen on hindering Iran’s access to cryptos.

Last December, Iran’s decision of launching a native cryptocurrency saw severe opposition by the U.S. Congress. At that time, the U.S believed that with the help of cryptocurrency, Iran could dodge U.S. sanctions.

In order to prevent Iran from implementing its crypto projects, a bill that goes by the name “Blocking Iran Illicit Finance Act” was also introduced by Congress. According to the bill propositions, several more sanctions were to be imposed at the Iranian financial institutions.

Moreover, any kind of financial settlement and transactions encompassing the Iranian digital currency were strictly prohibited. In addition to that, supply, sale or use of Iran digital cryptocurrency was also forbidden.

Previously, in April 2018, the Central Bank of Iran (CBI) prohibited the use of cryptocurrencies. All the banks along with other financial institutions were stopped from handling cryptocurrencies. For crypto exchanges, buying, selling or promoting cryptos was strictly banned. However, at present, Zarandi revealed that the Iranian ministers were seeking the help of CBI to figure out usage of cryptos in the country.

BlockPublisher reported earlier how bitcoin trade took a blow in Iran due to U.S. sanctions. Ex-President of the U.S, Barack Obama relieved Iran of the sanctions. After agreeing to a pact, economic sanctions were lifted of Iran. The pact, Joint Comprehensive Plan of Action (JCPOA) demanded Iran to disclose details of its nuclear projects and limit its nuclear activity.

This isn’t the only incident where U.S interfered with a country’s crypto plans. Previously, Venezuela launched its national cryptocurrency, Petro, because the national currency, Bolivar, was bitterly losing its value. Soon after Petro’s inception, President of Venezuela planned to spread its application. He even decided to take the national cryptocurrency to the international trade platform.

READ ALSO: Accept Petro Crypto – Maduro Orders Venezuela’s Premiere Bank

However, like with Iran, U.S. imposed sanctions on Venezuela as well. Due to the sanctions, U.S. citizens and companies were strictly prohibited from using Petro or dealing financially with Venezuela.

Trump’s government suggested that by developing a cryptocurrency, Iran may try to find a way out for dealing with the sanctions imposed on Iran. U.S. government is always attentively observing the moves of other countries.

In the recent past, Trump outlined the practices of China and European countries. He shared the wrongdoings by the Chinese and Europeans in a Tweet. With an alarming tone, he tried to alert everyone and urged that U.S. should either take some step or suffer the tyranny. This shows that the U.S is quite responsive to matters involving monetary developments.

Apart from Iran and Venezuela, Cuba is also devoting efforts and time for devising a local cryptocurrency. Like Venezuela, plan of Cuba for a native cryptocurrency emerged after the national fiat lost to hyperinflation. To save the economy and solve crisis, Cuban officials unveiled the plan on a TV show.

READ ALSO: Bitcoin Miners Facing Crackdown in the Cheapest Crypto Mining Country

Cuba was also sanctioned by the U.S. At present, the country has been exploring cryptocurrency to depths for improving the economy. John McAfee, very active in the crypto space, offered help to Cuba in launching a cryptocurrency.

McAfee claims to understand crypto space very well and offered his guidance to Cuba. Although Venezuela and Iran are also seeking a crypto solution, they both haven’t succeeded with their ideas. In this regard, McAfee, elaborating the reason behind countries failing with blockchain based projects, said:

You can’t just create a coin and expect it to fly. You have to base it on the proper blockchain, have it structured such that it meets the specific needs of a country or economic situation. There are probably less than 10 people in the world who know how to do that and I’m certainly one of them.

Many countries are finding value and potential in cryptocurrencies for solving their problems. While Venezuela has already launched a stablecoin, Iran and Cuba are planning to do the same in the near future. Let’s see what besides the U.S sanctions and pressure turns out to be common in all the national cryptocurrency projects.

READ ALSO: Bitcoin to Lose – Venezuela Hyperinflation is Already on Steroids

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Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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