US sanctions accelerate Iran’s blockchain drive

Blockchain technologies, especially cryptocurrencies, have become a hot topic in Iran during the past few years, just as in most other countries. Few tangible results have materialized so far, but US officials may have actually done Iran a favor as they have significantly accelerated development of blockchain-based projects. The unilateral reimposition of US sanctions and a local drive for transparency have prompted Iranian authorities to increasingly turn to blockchain and everything it enables.

At least two state-backed virtual currencies are in the works, one spearheaded by the Central Bank of Iran (CBI) and the other by the Information and Communications Technology Ministry. Authorities have signaled they will at least partially embrace cryptocurrencies. The head of the High Council of Cyberspace, Abolhassan Firouzabadi, said Nov. 4 that Iran’s government has accepted cryptocurrency mining as an industry. The CBI is expected to divulge its regulatory stance on cryptocurrencies in the coming months and recognize the decentralized phenomena; while it is unclear what degree of recognition will take place, the expected move signals an about-face from the blanket ban on handling cryptocurrencies for financial institutions issued in April.