Iran should take Bitcoin and cryptocurrencies seriously
On June 4, 2020, parliamentarian Mohammad Hossein Farhangi advised the country’s government to push ahead with the development of its emerging crypto market, according to the Tasnim news agency.”Take the Bitcoin issue seriously, because if it can be managed, it can be a good opportunity for the country, otherwise it will be a matter for financial and credit institutions.”For Iranian lawmakers, it makes little sense that the government placed crypto affairs under the jurisdiction of the Ministry of Industry and Mining. Instead, he argued that Bitcoin, along with digital currency issues, should generally be under the auspices of the central bank.
Warning of the dangers
At the parliamentary session, he also waited for the dangers of not seriously considering Bitcoin and virtual currencies. In his speech, he explained that holey crypto regulations could jeopardize liquidity management protocols and money control policies.His speech follows an earlier call by Iranian President Hassan Rouhani to create a clear national strategy for crypto mining. At that time, the president identified regulations and revenue collection as important aspects of any state-sanctioned crypto-mining policy.Iran has its own attitude towards cryptocurrencies. On the one hand, the government fully supports mining, on the other hand, it has something against trading in virtual currencies, which was classified as money smuggling in late May.Iran continues to struggle with rising inflation and its currency value is falling rapidly. Iran has been reported to opt for a currency changeover and introduce the toman instead of the rial. This condition in particular has led to Bitcoin (BTC) becoming increasingly popular in Iran.