Iran is reportedly very close to finding a solution to the stiff sanctions imposed by the U.S., as it’s looking into unveiling its first state-backed cryptocurrency. According to Al Jazeera, the Rial-backed cryptocurrency is expected to be announced at the annual two-day Electronic Banking and Payment Systems conference, which kicks off on January 29 in the capital, Tehran. With the theme of the 2019 conference being the “blockchain revolution,” many have speculated that the Islamic Republic will use the gathering to announce the anticipated news.
Back in August 2018, Iran’s Informatics Services Corporation (ISC) revealed quite a bit of detail regarding the proposed cryptocurrency. The stablecoin will be issued by the Central bank of Iran and developed under a private blockchain infrastructure, meaning it cannot be mined. The cryptocurrency could be used to facilitate payments between Iran, Russia, and Armenia, all of whom signed a trilateral blockchain cooperation agreement in November 2018. With Iran being excluded from SWIFT and Russia facing sanctions from the U.s., the countries could use the proposed rial-backed stablecoin to bypass the bans on cross-border payments.