Iran has revealed details of its national cryptocurrency amid U.S. led sanctions.
Iran's cryptocurrency is backed by the Rial and has been developed on the Linux Foundation open-source Hyper Ledger technology. This gives Irans central bank control of release of the digital currency. Therefore, Irans digital currency cannot be mined and is only available for viewing on a private ledger.
Iran intrends to use the currency as an interbank payment instrument in its first phase and as a local medium of exchange in the second phase. Iran expects the implementation of cryptocurrency will relieve some of the pressure of U.S. sanctions against the country.
Iran is also looking to finalize its stance on mainstream cryptocurrencies by late September. Currently citizens are not allowed to trade in cryptocurrencies for concerns of money laundering and has issued punishments as a result.
With the inflation of the local currency Iranians are turned to more secure assets to store their wealth with Bitcoin prices surging in the country as well as moving fiat to gold.
Pressure is on for Iran as the sanctions continue to cause runaway inflation for the local currency. Some of Irans allies have provided financial aid as well as Iran challenging the U.S. sanctions in open court.