Iran has moved fast to develop its own blockchain-based national cryptocurrency, as the Islamic Republic awaits a decision by the U.S. President Donald Trump on restoring economic sanctions.
The pilot cryptocurrency was jointly developed by the Central Bank of Iran (CBI) and Iran's Information and Communications Technology (ICT) ministry.
The move comes just a week after the CBI banned banks under its purview from transacting in bitcoin and other virtual currencies amid concerns of these becoming a potential tool for money laundering and financing of terrorism.
Iran's ICT Minister MJ Azari Jahromi reportedly said the experimental cryptocurrency is now ready. He pointed out that the central bank is not opposed to local cryptocurrencies.
Late February, Jahromi announced plans to launch a state-backed digital currency following a meeting with the board of directors of the state-owned Post Bank of Iran.
The plan was a bid to ease the Islamic Republic's economic crisis, and circumvent impending U.S.-led sanctions.
The minister had said that Post Bank has been working with local experts on the experimental cryptocurrency model that was to be presented to the country's banks for review and approval.
The ban on cryptocurrencies is also seen as an act to shore up its own fiat currency Iranian rial, which had hit an all-time low in early-April.
Iran had earlier formally unified its official and open market exchange rates and banned money changing outside of banks in a bid to boost rial.
Meanwhile, the plunging value of the rial is attributed to the fears that the U.S. will again impose sanctions on the Islamic republic. Trump is set to decide on restoring U.S. economic sanctions on Iran by May 12.
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