It’s no longer news that Iran is trying to create its first cryptocurrency, the goal was to adopt cryptocurrencies as a means to bypass Sanctions and of course reduce its dependence on the US dollar after the United States pressured SWIFT to take back its support for Iranian Banks.
So to reduce the dependence on the US dollar and replace it with another currency, the country is looking forward to create its first cryptocurrency.
However, the United States is hell bent to make sure that countries with which it does not have the best diplomatic relations fail in their attempts to innovate in the development of blockchain technologies.
If Iran fails to develop a cryptocurrency or at least not be able to adopt cryptocurrencies, it will be difficult to improve their financial sector.
Iran’s Passive Defense Organization already said that cryptocurrencies has the potential to boost Iran’s economy. It is the best way to fight back against United States in a Diplomatic and Economic Ground.
Well, the United States is planning to introduce a bill titled “Blocking Iran Illicit Finance Act”. This should attempt to prevent Iran from advancing in its efforts to create a cryptocurrency.
This is coming after Trump decided to withdraw from the Joint Comprehensive Plan of Action (better known as the Iran Nuclear Deal).
Below is the full details of the “Blocking Iran Illicit Finance Act” that will be enforced by the United States.
“All transactions related to, provision of financing for, and other dealings in Iranian digital currency by a United States person or within the United States are prohibited”
“The President shall impose 5 or more of the sanctions described in section 6(a) of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) with respect to any foreign person that the President determines knowingly engages, on or after the date of the enactment of this Act, in a significant transaction for the sale, supply, or transfer to Iran of significant goods or services, or technological support, used in connection with the development of Iranian digital currency”
(a) IN GENERAL .—The President may impose the sanctions described in subsection (b) with respect to a foreign person if the President determines that the foreign person, on or after the date of the enactment of this Act—
(1) knowingly conducts or facilitates any significant transaction related to the purchase or sale of Iranian digital currency or a derivative, swap, future, forward, or other similar contracts the value of which is based on the exchange rate of Iranian digital currency; or
(2) maintains significant amounts denominated in Iranian digital currency outside the territory of Iran.