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Cryptocurrency like Bitcoin to be used by Iran to escape Donald Trump’s sanctions

Priya

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Cryptocurrency like Bitcoin to be used by Iran to escape Donald Trump's sanctions
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The recent hustle-bustle between Iran and the United States of America seems to have taken a new turn. The Iranian government is all set to develop its own cryptocurrency in order to escape from the United States sanctions, as reported by a local newspaper.

The Directorate of Deputy of Management and Investment Affairs, Alireza Daliri said that several domestic companies have developed the digital currency. The digital currency is still in progress and they will launch it after fixing all the flaws. He further stated that the companies are working in coordination with the Central Bank of Iran [CBI].

Alireza told ISNA news agency that they are trying to prepare the grounds to use the virtual currency in the country. He further stated that the digital currency would help the country to transfer money anywhere around the world and would also help the nation during the U.S sanctions.

The announcement comes in the limelight right after the speculations that the Iranian and the Russian government are looking to launch their own cryptocurrencies. The Chairman of the Iranian Parliamentary Commission for Economic Affairs, MP Mohammad-Reza Pourebrahimi had recently proposed the idea of launching digital currency in Moscow.

MP Mohammad had stated that the CBI was asked to look into the proposal of digital currencies by the Iranian Parliament. Pourebrahimi had discussed this during the State Duma Committee on Economic Policy and further stated they have Russia’s corporation for the launch of the digital currency.

The chair of the Iranian Parliamentary Commission of Economic Affairs said:

“They share our opinion. We said that if we manage to move this work forward, then we will be the first countries that use digital currencies in the exchange of goods.”

The launch of the cryptocurrency has been unveiled right when the President Rouhani spoke regarding the U.S withdrawing from the Joint Comprehensive Plan of Action [JCPOA] also known as Iran nuclear deal. JCPOA was created in 2015 and the member countries of the deal with Iran were Russia, France, China, United Kingdom, the United States and the European Union.

On 9th May 2018, President Donald Trump withdrew from JCPOA, which sparked a lot of controversy around the world. Trump claimed that the deal was ‘one-sided’ and it should have never existed. The other member countries including the European Union have decided to remain in the agreement as it a non-bilateral agreement. Trump has faced opposition from the member countries for withdrawing from the agreement.

The President of the United States has been pressuring the members of the agreement to withdraw from the deal and has threatened to impose sanctions on European companies that do business with Iran. Moreover, the American firms are not allowed to do business with Iran and foreign countries that do business with Iran will no longer have access to the U.S Banking and Financial System.

During his speech, President Rouhani stated that the government has “plans for the contingencies from months ago and will not face any serious problems at all.” The government had previously urged all the sectors to coordinately work with the government and the roadmap of the economy is in its preparation stage.

Many speculate that the launch of the cryptocurrency might be to stabilize the country’s economy if the sanctions are passed.

Moreover, a related news emerged on Wednesday, Tehran had announced that the national encrypted key has been developed, which would use the blockchain technology. The key will be implemented in the national banking system and will be released within three months. They also mentioned that banks will be able to build smart contracts.



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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin’s divisibility and transportability make it much more flexible than digital gold

Priya

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Bitcoin's divisibility and transportability make it much more flexible than digital gold
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Andreas Antonopoulos, the author of Mastering Bitcoin and a Bitcoin proponent, spoke about Bitcoin as a digital currency and whether it would be limited to being just that, in his latest Q&A session on Youtube.

The author was asked about the possibility of Bitcoin becoming the world’s reserve currency, a digital gold and whether other cryptocurrencies would be used as a day-to-day currency. To which, he said:

“I don’t know. I think it would surprise me, actually, if Bitcoin could only fit into the niche of ‘digital gold.’ Bitcoin has characteristics of divisibility and transportability that make it… much more flexible than digital gold.”

Antonopoulos stated that gold is not a good medium of exchanges, because of the difficulty related to verifying whether it is real. He also stated that the store of value is “heavy to carry”, adding that the more one tries to make it fungible and divides it into smaller pieces, the harder it gets to verify its authenticity. According to him, verifying gold in larger amounts, which are stamped by reputable third parties, is easier.

“Then the cost of storing and securing gold is so high that it is better done in a custodial manner, where you put it in a vault and have professionals guarding it. You [are left] with a little paper certificate [of ownership], which have other problems like hypothecation. [All of this] makes it difficult to use [gold] directly as a medium of exchange.”

This was followed by the author remarking that these problems are not prevalent in Bitcoin, even though there is “greater complexity” when it comes to securing the cryptocurrency. He went on to say that this would cause some pressure towards third-party custodians, however, if that pressure is going to be lesser in comparison to the current system, it would still be a “more decentralized future”.

“The ability to transport bitcoin very quickly, in very small amounts [or very large amounts], [including] with second-layer networks that are even faster [and smaller] at the level of microtransactions”

Moreover, the Bitcoin proponent thinks that Bitcoin could be a “very effective” medium of exchange and store of value, adding that the volatility would decrease through use and volume, wherein the currency would not be witnessing a major price fluctuation making it “less speculative in nature”.

“That doesn’t mean there won’t be other coins which [are used] for everyday currency. I think there will be [others]. I don’t think Bitcoin will be just digital gold. It may become a world reserve currency, but I think the concept of a unitary world reserve currency [would] no longer be relevant.”

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Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency fails to climb on the bull after price stays locked down

Akash Anand

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Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency fails to climb the bull after price stay locked down
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The cryptocurrency market’s bearish woes do not seem to have waned with several popular coins seeing a continuous price downturn. Bitcoin [BTC], XRP, and Ethereum [ETH] have only enjoyed sporadic bullish spikes with a definite control being exerted by the bear.

1-hour

The one-hour BTC chart shows the gradual drop in prices. The support has been holding at $3214.17 while the resistance is maintained at $4160.21. The recent downtrend took the prices down from $3558.58 to $3367.97.

The Relative Strength Index shows a slight spike towards the overbought zone. This means that the buying pressure is increasing slightly more than the selling pressure.

The Bollinger band shows a clear divergence with the upper band and the lower band indicating an imminent sideways price movement.

The Parabolic SAR has been predominantly bearish with the markers staying above the markers. At the time, the SAR indicators were below the price candles which is a bullish sign.

1-day

The one-day chart for Bitcoin does not paint a better picture for the cryptocurrency with no uptrends in sight. The long-term support has been holding at3346.6 while the recent downtrend saw the price fall from $6262.97 to $3408.

The MACD indicator shows the MACD line and the signal line moving as a conjoined pair. Other than the bearish dip, the MACD histogram has been undergoing a lull.

The Chaikin Money Flow indicator is just below the zero line, which is a sign of the money flowing out of the market being more than the money coming into the market.

Conclusion

The above-mentioned indicators all point to an extended bear run with the prices still being clamped below the $4000 mark. With the year coming to a close, the predicted bull run does not seem to be occurring anytime soon.

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