Analysts believe Iran is exploring cryptocurrency and blockchain technology for ways to bypass U.S. sanctions that have crippled its trade and economy. Bitcoin and other cryptocurrencies had gained wider use in the country following its ban on the US dollar.
Cointelegraph reported that Iran’s official stance on crypto has changed and evolved to give authorities more control over how blockchain technology is integrated into the country’s economy.
The Central Bank of Iran (CBI) has released an early draft of its regulations on cryptocurrencies, reversing a previous ban but still imposing restrictions on the use of digital currencies in the Islamic Republic. The CBI affirmed that it will closely consult with crypto experts prior to issuing any regulations.
Iran’s central bank has reportedly been developing a platform dubbed “Borna” to provide a common standard for blockchain use in Iran and bring down the cost of developing blockchain solutions, enabling domestic banks and other financial entities to test and implement the technology.
A three-way partnership between blockchain solutions platform Areatak, the CBI, and local banking and payments firm Informatics Services Corporation has given birth to the blockchain platform, “Borna,” developed using Hyperledger Fabric. Its initial services include electronic customer identification, token management, and online auditing.
The project has been perceived as a workaround for the economic sanctions imposed on Iran by the United States. Project stakeholders have denied the claim and say that Borna is only available for use within the country and is not cryptocurrency-enabled.
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