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Iranians embrace cryptocurrency trading as Iran struggles to cope with US sanctions and hyperinflation

Jibin M George

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Iranians embrace cryptocurrency trading as Iran struggles to cope with US sanctions and hyperinflation
Source: Pixabay

In light of the economic crisis that has plagued Iran over the past six months, many Iranians are turning to trade cryptocurrencies to hold some form of digital assets that can’t be devalued or demonetized by any central authority. Such a move on the part of many comes after the economic crisis, triggered by severe economic sanctions by the United States of America have started to take effect on the common populace.

The Persian state, that is buckling under the pressure of sanctions imposed by the USA for its nuclear programme and state-sponsored terror activities has seen its currency, the Iranian Rial, fall in value massively over the past six months. Significantly, in a move reminiscent of Zimbabwe a decade ago, the Iranian Central Bank is contemplating lopping off a few zeroes from the value of the Rial. Presently, a US Dollar is worth over 110,000 Iranian Rial.

Such a move hasn’t inspired much confidence in the Iranian populace, many of whom are aware of the fact that such a step has never worked anywhere in the world. This is part of the reason why many Iranian and foreigners settled in Iran are turning to trade cryptocurrencies which despite their falling fortunes, offer better value than any fiat money available in Iran.

According to a report by Localbitcoins.com, cryptocurrency trading in Iran spiked after the US withdrew from the nuclear agreement with Iran and re-imposed sanctions. The trades were at an all-time high last month when popular protests erupted against the government in December. The sanctions coupled with falling oil trade has led to hyperinflation in the currency, which has subsequently forced many Iranians to deal exclusively in digital currency.

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