Iran Gets Closer To Strong Financial Crisis, Can Crypto Save The Country?
Iran gets closer to a strong financial crisis because of the economic sanctions imposed on the country but can Iran avoid them by turning to crypto? Let’s find out in the latest cryptocurrency news today.
Iran is really in a bad shape now and the US officials believe that the country’s finances will likely be in a worse situation than they believed. The country’s damaged economy has been sparking some protests for a while now and Iran is now moving closer and closer to a financial crisis. After the sanctions put a stop on Teheran’s oil exports, some of the major losses were felt all over Iran and since then, the country tries to evade the sanctions which somehow softened the blow but it didn’t really do anything in the long run. Currently, Iran gets its last exchange reserves used indicating that any control that the government has over importing supplies and equipment could be lost soon.
Soon enough, Iran will find itself in a worse situation than it was six years ago when President Hassan Rouhani and his government were pressured into the nuclear negotiations. For now, it is difficult to predict what could happen to the economy of the country as there are many unknown factors that could still change. Some intelligence that the US has received from its allies suggests that Iran could have off-book income that could help it over the difficult periods such as this one.
Alternatively, the country could smuggle its oil and bring supplies although the US officials doubt that the effect of the sanctions can be offset by smuggling. This is correct but another option for Iran is to turn to cryptocurrencies for help. Altcoins such as bitcoin is known for a number of qualities such as their borderless nature and decentralization. Bitcoin as a form of money is not under anyone’s control which means that the US cannot do anything to stop Iran from using it.
A few days ago, Bloomberg reported that Iran plans to manufacture up to $11 billion worth of various products in the next two years just to replace the imports and to find a way to deal with the US-led sanctions. As per other reports, the Iranian companies would exploit the anonymity of cryptocurrency and avoid American restrictions.
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