Iran Revealed The Plan Of Launching Its Own Gold-Backed Cryptocurrency

Iran revealed the plan to unveil its own gold-backed cryptocurrency days after the president of the United States slammed bitcoin and the entire idea of crypto. In today’s altcoin news we analyze the new cryptocurrency of the country.

The gold that is kept in reserve by Iran’s central bank will back the value of the tokens on the blockchain of the new central bank cryptocurrency. The crypto will be mined by small, private Iranian tech companies. This idea could further complicate the problems between the United States and the Middle Eastern countries. According to the reports by Merh News, the Central Bank of Iran has provided permission for the new crypto to be unveiled so the CEO of FANAP Shahab Javanmardi revealed:

 “The Iranian cryptocurrency is backed by gold but its function is similar to foreign rivals. The domestically encrypted money is to ease optimal use of Iranian banks’ frozen resources.”

Iran revealed the plan but it still far from clear. The multiple authorities in the different agencies issued contradictory statements so they seem confused and uncertain how to approach the new crypto currency and how to regulate it as the financial authorities in the United States do. The FANAP CEO urged the government to continue with the clampdown on bitcoin in the country since the authorities seized more than 1,000 bitcoin mining rigs in the Yazd province.

The Iranian government could lose the battle against bitcoin mining in the country since the petrol nation is a paradise for those who make good money out of it mainly because of the low electricity costs. As of this year, more than 70 percent of the central banks around the world started working on digital currency and Iran’s central bank joined in. In Venezuela, President Maduro launched a state-backed cryptocurrency by oil in 2018 and he later ordered the central bank of the country open trading desks for the Petro cryptocurrency. Singapore’s bank didn’t launch a full-blown cryptocurrency but did however issue tokens of its national fiat currency which is based on the Ethereum private blockchain as noted in the latest cryptocurrency news before.