Iranian President Hassan Rouhani recommends that Islamic nations create a cryptocurrency as an alternative to the US dollar to combat American ‘hegemony’. According to him Official report, Rouhani proposed the creation of a Muslim cryptocurrency and a platform to minimize US sanctions against Iran.
Rouhani said the United States is "intimidating" other nations using economic sanctions and other tools. Iran faces numerous penalties in this moment, including sanctions Scientific, military and economic.
Hassan Rouhani is getting a lot of support since Mahathir Mohamad, Malaysian Prime Minister, agrees with Rouhani's proposal and says he has already proposed a similar idea, but the superpowers stopped it.
This is not the first time that Iran shows interest in cryptocurrencies. In July, the Mehr News Agency announced that Iran's first cryptocurrency will be revealed soon and would be backed by gold.
“The Iranian cryptocurrency is backed by gold, but its function is similar to that of foreign rivals. The money encrypted in the country is to facilitate the optimal use of the frozen resources of Iranian banks, ”said Sahab Javanmardi, an official of the Iranian Chamber of Commerce, Industries, Mines and Agriculture.
Other cases of cryptocurrencies to avoid financial penalties
A notable example of this practice is Venezuela with the Petro cryptocurrency, which is also a resource backed asset. The cryptocurrency was created primarily to "advance monetary sovereignty issues and make new forms of international financing" according to Nicolas Maduro.
Unfortunately, Petro has not really helped the country or its residents and most cryptocurrency enthusiasts consider it a scam. Of course, the US they used a good amount of tools to prevent the digital asset from gaining traction and US citizens were banned from investing in it.
Many other authoritarian regimes are turning to cryptocurrencies for this sole purpose, including North Korea or Russia. For example, it was discovered that North Korea has been running a Bitcoin mining operation for some time earning a minimum of $ 15 million but up to $ 200 million thanks to it.2