Iran Is Preparing Infrastructure For Bitcoin Adoption

Tyler Durden's picture

Amid rising speculation whether Catalonia will adopt some cryptocurrency should it follow through with plans for independence, and in the context of articles such as this from Vice that "Russia is going all in on bitcoin", one country appears to be preparing to accept bitcoin as digital legal tender: Iran.

In an interview published last week with the Farsi newspaper Shargh, the Iranian Deputy Minister of Information and Communication Technology, Amir Hossein Davaee said that"The ministry of communications and information technology has already conducted a number of research studies as part of efforts to prepare the infrastructure to use Bitcoin inside the country."

He went on saying the crypto currency has two aspects: Economic and infrastructural. “We as the main center in Iran dealing with the country’s technology developments have taken very seriously the issue of preparing the infrastructure for the new currency.”

Quoted by the Iran Front Page, the Iranian official went on to say that such digital infrastructure is part of the soft power of each country and said entrance of the currency into Iran will end up in the general interests of the country. “Arrangements are being made with the related organizations to put together the infrastructure as early as possible.

One reason for Iran's eagerness to escape a dollar-denominated world is that as part of the original sanctions against the country four years ago, SWIFT removed Iran from its network, cutting off the country's banking system from global networks and making dollar-denominated transactions impossible, in the process crippling Iran's oil exports which only came online following Obama's nuclear deal. Being locked out of US dollar commerce, Iran's economy suffered for many years from financial sanctions which crippled the ability of local exporters and importers from working with international counterparts.

With US President Donald Trump taking a hostile approach to the Islamic republic, and with the Nuclear deal on the verge of collapse due to disagreements over the country’s nuclear and ballistic missile programs, it should come as no surprise that Iran is testing how to bypass possible new financial sanctions using Bitcoin, beyond merely local use.

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Meanwhile, speaking at a Russia and China heads of government meeting on Wednesday, Russian Prime Minister Dmitry Medvedev said that the international financial system needs to balance which is why there is no place for a dominant currency, referencing the US dollar.

“The balanced system of financial relations should be based on the use of various reserve currencies, various forms of settlement. There should be no domination of any one currency,” Medvedev said, adding that no matter how strong the American economy, it also faces problems from time to time. "As a result, the entire financial world is shaken. A more balanced international financial system is better for everyone."

According to Medvedev, Russia was pleased with the growing role of the Chinese yuan in global settlements, as it represents one of the world's largest economies. In May, Russia and China established an investment fund worth 68 billion yuan ($10 billion).The countries also plan to extend the bilateral currency swap agreement for another three years. In 2014, Russia and China agreed on a 3-year ruble-yuan currency swap deal of up to $25 billion.

China has been pushing for a greater use of the yuan in oil settlements. As the country has become the largest oil importer overtaking the United States, it can now dictate rules, experts note. The chief economist and managing director at High Frequency Economics Carl Weinberg has predicted that “Chinese [oil] demand will dwarf US demand," and Beijing is likely to “compel” Saudi Arabia to sell crude oil in yuan, a move to be followed by others. We discussed this last week, when we noted that China is expected to roll out a yuan-denominated oil contract, i.e. a "Petroyuan", within the next two months.

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MozartIII's picture

That just might screw with the US pol heads worse than anything else.

Arnold's picture

That'll kill it.
Not Halal.

nope-1004's picture

It's a move away from petrodollar and possibly a way to transfer fiat out of .GOV control.  Can't really send gold for oil.... a bit inconvenient.

However, my gut is that this will accelerate the attempts at manipulation of it by the Fed, via futures and other computer games.

Next Bloomberg article to come:  "If you own bitcoin, you support Iran and are a part of the axis of evil."

MozartIII's picture

"Try and fail they will!" Quote from old crypto C Master.

 

To many things getting out of the bag, to fast for the US. The FED & gov is in reaction mode on about everything. The failure to plan......

Weisshorn's picture

One of the big achilles heels of BTC is that you cannot spend it for stuff locally, like food, unless the tax authorities and banks are cooperative.

The use of BTC to settle international trade accounts does not ever require tangeable goods to back it up, and it would bypass the $/Swift international system.  That is why all these rogue nations are interested in it, because it could easily become an efficient Swift bypass payment system as long as large numbers of nations accept it.

So I guess the next step is for the US to start invading countries for their wallets and then stealing their private keys. 

mrtoad's picture

"Rogue Nations"??? too much CNN?

Creepy_Azz_Crackaah's picture

Oh, no... tmosley must have hyperventilated one too many times over the last bitcoin promotional article and croaked.

No sign of his every other post pumping here.

Creepy_Azz_Crackaah's picture

"...conducted a number of research studies as part of efforts to prepare the infrastructure to use Bitcoin inside the country."

Is using a computer in Iran really something that takes multiple research studies?

"prepare the infrastructure..."

Bokkenrijder's picture

My guess is that countries like Iran, Russia and China are jumping on this Bitcoin bandwagon only in order to dethrone the Dollar.

Once that stage is complete, my guess is that they will ditch and bury cryptocurrencies very quickly because it's is way too annonymous and it's too difficult to be controlled by governments, especially authoritarian governments like those of Iran, Russia and China.

What comes next is maybe a Petro-Yuan with perhaps also a partly gold backing. Rolling out a Petro-Yuan straight away would be risky at this stage of the game, because it would mean an allout war declaration on the US, and it also involves commodities like oil and gold that are not yet fully controlled by China, Russia and Iran.

Merely by temporarily giving BTC the green light, these countries do not have to create a competing currency themselves, but yet it will help fuel the hype which might destabilize the Dollar beyond repair. All China, Russia and Iran have to do is lean back and enjoy the show, while at the same time they buy more and more gold as this is getting dumped by all BTC fanboys.

Talking about a hype, did you guys already hear about that Dutch Bitcoin family? https://www.cnbc.com/2017/10/17/this-family-bet-it-all-on-bitcoin.html

Golden Phoenix's picture

Depending on when in October the Dutch guy bought he's up about 30-70%.

Some people are too dumb to accept free money. Others have been doing so for years. 

 

Mr_Potatohead's picture

He's busy dumping his holdings.  His job as a pumper is nearly over. The top is near, so he's trying to sell into the final rally.

You'll notice that this article doesn't say anything about using bitcoin exclusively.  They're putting infrastructure in place.  Makes sense.  Doesn't make sense to use bitcoin!  Why pay cryptopumpers a premium for bitcoin when they'd have a captive population and be capable of starting their own?

Creepy_Azz_Crackaah's picture

Exactly. What gubmint is going to pay Satoshi billions, if not trillions, of whatever their currency is, in order to use Satoshi digital ones and zeros for trading. Won't happen.

Kafir Goyim's picture

"Satoshi" doesn't get a cut when you send a bitcoin.  Only the independent miner that solves the block where your transaction is recorded in the blockchain makes any money from your transfer.  So don't worry about giving Satoshi money, since that seems to bother you.  Spend your bitcoin my friend.

Creepy_Azz_Crackaah's picture

""Satoshi" doesn't get a cut when you send a bitcoin."

Correct. He owns roughly 1/3 of all bitcoins so if governments are going to buy enormous quantities if bitcions in order to operate they will be buying from him.

tmosley's picture

"5%=1/3rd"

Peanut math, folks.

Creepy_Azz_Crackaah's picture

LOL! Wow. You display your common core math "skills" proudly. Tip to tmosely: 1/3 = 33.333% I'm sorry if this is embarrassing to you, correcting your obvious math errors in public, but you do need to learn basic math skills.

1/10 = 10%
1/2 = 50%
3/4 = 75%

I hope this has helped you, tmosely. Good luck in remedial math class.

tmosley's picture

>He's busy dumping his holdings.  His job as a pumper is nearly over. The top is near, so he's trying to sell into the final rally.

You're still a total moron.

If I wanted to dump by bitcoin, I could do it from home in my underwear. Where the fuck do you think you have to go to sell it? There ain't no local bitcoin shops.

Mr_Potatohead's picture

Tmosley taking a dump in his underwear...   now there's something even scarier than buying bitcoin.

TVP's picture

The top was near in 2013 with the spike from 50 USD to 250 USD back down to 100.  That was the bursting of the bubble that led to the death of bitcoin.  All this talk is crap because bitcoin is deader than Ghadaffi.  It also died when it crashed from 1,100 to 250.  Then from 300 to 200.  And from 1,000 to 800.  Even from 3,000 to 1,900 !  Cats don't have half as many lives as bitcoin.

https://99bitcoins.com/bitcoinobituaries/

And for all you tin-foil hat fuckers saying this is a ploy to destroy the dollar...you don't get it.  ALL fiat is being devalued as evidenced by bitcoin soaring to the Andromeda galaxy.  A bitcoin in Zimbabwe is already worth the Zimbabwe currency equivalent of 10,000 USD.  Same shit coming to an America near you.    

Mr_Potatohead's picture

What you, tmosley, and the other cryptoworshippers can't seem to see it that this bubble is being allowed to occur for reasons that are only known to the guys calling the shots in the current system.  This is a test and a trap - probably created by the same guys who created bitcoin (NSA?).  I can't predict the exact timing or price for the top, but I'm sure that it's going to end in an ugly fashion for most bitcoin holders.  I completely understand and appreciate the arguments about fiat being devalued, etc.  But bitcoin does not provide the protection that its owners seem to think because the entire system still requires trust in something that can be changed by those calling the shots.  Isn't that the problem with the current system?  What about human nature makes bitcoin immune to the same shenanigans? 

IH8OBAMA's picture

Ah, the perfect opportunity will be at hand to destroy Iran financially.

 

Creepy_Azz_Crackaah's picture

We'll **never** be able to trace their (public) financial transactions now... LOL!

eftian's picture

Iran probably used some of those pallets of cash Obama gave them to buy lots of bitcoins! Nice timing too! Free bitcoins for all Iranians!

DjangoCat's picture

Fuck em if they can't take a joke.

We cryptonites are already branded as drug smugglers and terrorist financeers.  What could possibly go wrong?

 

I woke up's picture

Only terrorists use Bitcoin! /s

(drug dealers too)

HRClinton's picture

re.. "Only terrorists use Bitcoin! /s (drug dealers too)"

Al CIAda uses BTC?

Who knew?

DjangoCat's picture

This is what made Muamar Qadafi and Sodamn Insane dead men.

ReturnOfDaMac's picture

Xi ain't no middle east goat-herder buddy ...

Consuelo's picture

 

And neither is Iran.   Of course, S-400 batteries along the border don't hurt either...

Arnold's picture

Lots of EMPs gonna be running around loose.
What's in your wallet?

A82EBA's picture

lol now thats funny rite thar

TVP's picture

Paper wallets, physical bitcoins on bronze or gold-plated bronze, and hardware wallets locked inside a Faraday cage.  

^ All immune to an electromagnetic pulse.

maxblockm's picture

Worldwide distributed ledger.

Also immune to EMP.

unsafe-space-time's picture

You will soon be able to buy Iran for a bitcoin.

Bitcoins are like diamonds. The jews control the diamonds.  At least diamonds have many uses. Do you notice that synthetic diamonds didn't even put a dent in that market? This show you the power of the jew. I can't imagine that bitcoin isn't an invention of Rothchildren 

Diamonds are a currency for the ultra rich. It's a small market.

Now as bitcoin expands it makes the holders richer and richer. Everyone else becomes poorer and poorer. Because you are inflating/giving value to an abstract idea you are making things that are real worthless. When real things become worthless production of goods stops. I don't think this will end well.

BritBob's picture

I thought ye ole Ayatollah used used AMEX? 

Peak Finance's picture

LOLZ Fuck you petrodollar

 

Peak Finance's picture

LOL Red Arrow from a statist fiat loving cocksucker

bend over steeper for your masters fucker

IH8OBAMA's picture

Don't worry.  The boat will pull back into port one more time where it will be sunk.  LOL

 

FreeShitter's picture

I hope, I love cheap crypto

ReturnOfDaMac's picture

Smooth move, but a smoother one is just accept RMB.  Added benefit is you can use it to get things, the Chinese actually make stuff.  We make mostly debt ... can't eat debt.

Bananamerican's picture

all we need is for the Norks to climb on the Bubblecoin train now and .gov can 'act'

Winston Churchill's picture

Yes indeed.

But I need something official in Farsi first.The Korean I will have to rely on others for.

ReturnOfDaMac's picture

Brilliant idea, c'mon 'lil Kim, jump in the waters fine.

Fundies's picture

A Shitcoin for a Shit country. 

Winston Churchill's picture

Lets see Mosley get his head around that.

The mental convolutions will have to be epic.

Will him come out anti BTC, or will he become Shiite muslim ?

Can't wait.