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The rally that falls, the new policy stimulates the bitcoin bull market of Iran
The price of BTC in Iran is rose sharply Wednesday after the government of President Hassan Rouhani approved plans to integrate bitcoin mining and decreased local currency
BTC reached the world record $ 24,000 on the Iranian EXIR stock exchange, eclipsing its previous high of $ 20,000, as investors stacked in the digital currency looking for a safe haven against the rising up.
EXIR tweeted that "the bitcoin bull markets have already started in Iran as the price has fallen against the USD." The rally is trading at about 138,000 against the US dollar on the streets of Tehran, according to a Reuters report, about 230 percent above the official rate of about 42,000.
Iran Embraces Cryptocurrency Mining
stated that it will officially begin to recognize the extraction of bitcoins and other cryptocurrencies as an industry within three weeks. The Iranian central bank, which overseas exchange rates and monetary policy, is developing a political framework for industry, said Abolhassan Firouzabadi, secretary of the Supreme Council of Cyberspace of Iran.
Firouzabadi told IBENA – an agency specializing in banking and the economy, which is affiliated to the Central Bank of Iran, which delves into the use of cryptocurrencies it is expected to facilitate trade between Tehrain and its partners, especially in the wake of renewed US sanctions. "But the final policy to legislate (mine encryption) has not yet been declared," said IBENA.
Cash inflation
The price of the Iranian BTC broadly reflects the gap between the official exchange rate and that of the road, a reflection of inflationary pressures accumulating in an economy under US sanctions. A $ 24,000 BTC in Iran trades at a premium of around 240 percent compared to the global average. Coinmarketcap.com cited bitcoins at $ 7.017, at the time of printing.
According to the EXIR tweet, the price in the Islamic republic has risen by about 40% in the last three weeks, increasing much faster than the global average. It is not a flee run, but the declining rise, along with changes in bitcoin policy and some speculation, have peaked in demand.
Iran, the world's third largest oil producer, hopes to exploit cryptocurrencies to offset the expected squeeze of petrodollars from US economic sanctions to reduce oil sales from the country, the lifeblood of 39; economy.
Iran will not be the first country to try and use cryptocurrencies to deflate the effect of economic sanctions. In February, Venezuela issued a digital currency called the petro, which is claimed to be backed by oil. But Petro seems to have had problems. Recent media reports suggest that the currency did not find buyers and the oil that was thought to support it on a one-to-one basis with each cane is not there. The United States responded by prohibiting citizens from investing in Petro.
Do you think bitcoins can help curb the problem of inflation in the Iranian economy? Let us know what you think in the comments section below.
Images via Shutterstock.
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