The price of BTC in Iran jumped sharply on Wednesday after President Hassan Rouhani's government approved plans to develop bitcoin mining as the value of the state currency plummets.
On the Iranian exchange EXIR, the price of one BTC peaked at $24,000, eclipsing its previous record of $20,000, as most investors bought the digital currency in preference to the depreciating Iranian rial.
According to EXIR's Twitter, “The bullish trend in the Iranian Bitcoin market intensified as soon as the price of the rial fell.” According to a Reuters report, on the streets of Tehran the rial is trading at about 138,000 to 1 USD, although according to official data, the price of one dollar is 42,000.
On Tuesday, Iran said it would begin to officially recognize Bitcoin and other cryptocurrencies within three weeks. According to Abolhasan Firouzabadi, secretary of Iran's Supreme Council for Cyberspace, it is up to the Central Bank of Iran to develop a regulatory framework for the industry.
Firouzabadi told reporters from IBENA, a news agency affiliated with the central bank, that the use of cryptocurrencies should help facilitate trade between Tehran and its partners, especially in light of renewed US sanctions. According to IBENA, final laws to legalize mining have not yet been adopted.
The world's third-largest oil producer, Iran, is hoping to use cryptocurrencies to offset the damage caused by US sanctions aimed at reducing the country's oil exports.
Iran is not the only country that will try to use digital assets to combat the consequences of economic sanctions. In February, the Venezuelan government launched its own currency called petro, which officials say is backed by oil. Recent reports indicate that the currency has no buyers and the country does not have the oil produced to support the asset. The US government has banned its citizens from investing in petro.
According to news.bitcoin.com
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