The Iran government will permit Bitcoin mining in the country.
President Hassan Rouhani just made that announcement.
The decision was made as the national currency falls on U.S. sanctions, which has only increased demand for foreign currency.
Bitcoin and digital currencies are now more preferred since they are borderless and not affected by sanctions.
According to EXIR: “Bitcoin continues to be in demand in the country as rial has dropped significantly against the USD.
Reports from the office of the president indicated that the country will officially allow the mining of digital currencies within 3 weeks. They’re now waiting for the Central Bank of Iran to draft policy regarding this.
Speaking to IBENA a news agency which specialized in banking news, Supreme council secretary Abolhassan Firouzabadi said that the government wants to use digital currencies to ensure smooth trade with its partners. Albohassan added that the move is also aimed at avoided the sanctions imposed by the United States.
High Bitcoin Demand
In the last three weeks, the price of Bitcoin in Iran went up by more than 40%. With the legalization of mining and trading, the price is likely to go higher.
Iran wants to use digital currencies to secure its oil sector which is now under pressure because of the sanctions. Iran is among the top three oil producers in the world and can use digital currencies to avoid the US dollars. The sanctions by the United States where mainly made to reduce oil sales in Iran since it’s the country’s main source of income.
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