Bitcoin Poised To Replace US Dollar In Iran


Most people are well aware of how bitcoin can be sued for many different purposes. In Iran, things are slowly unraveling, as the country is planning to stop using the US Dollar within the nation’s borders. That is quite a significant development in Iran, even though alternative financial solutions can easily take the US Dollar’s place. In fact, one could argue this is excellent news for bitcoin.

Can Bitcoin Gain Momentum In Iran?

It has been rather difficult for bitcoin and other cryptocurrencies to gain any major traction in the Middle East. That is not entirely surprising, though, as the Middle East became a large financial player through traditional finance. Concepts such as bitcoin, which are not backed by anything tangible or protected by banks, will have a harder time becoming a mainstream trend. Then again, that situation may change sooner or later.

Now that Iran is looking to officially get rid of the US Dollar, an opportunity for bitcoin adoption arises. Since the cryptocurrency provides freedom of speech, it has a lot more merit in Iran and other Middle Eastern countries compared to fiat currencies. After all, using the US Dollar invited US sanctions against the region, such as economic embargos and trading bans. Moreover, bitcoin has proven to be a vital asset to those Iranians who do not have access to the US Dollar in the first place.

While there is some initial momentum in favor of bitcoin, the popular cryptocurrency’s legal status remains a gray area at best. Government officials have not decided on how they want to label bitcoin or whether or not it should be taxed.The Coinava peer-to-peer marketplace has been around for quite some time now in Iran, which allows users to buy and sell bitcoin in a frictionless manner. Moreover, there are a few bitcoin communities in Iran, representing a few ten thousand people in total.

Bitcoin adoption in Iran may very well be driven by external players, though. Brave New World Investments has been keeping an eye on the country and how they can help to bypass trading sanctions. Using bitcoin seems to be the best way to go in this regard, as the company will use cryptocurrency to fund operations and buy Iranian equities on the TSE. An interesting take on things, yet it goes to show how useful bitcoin can be compared to traditional solutions.

To be more specific, the Swedish company has very big plans for bitcoin and other cryptocurrencies. Once they buy stocks on the TSE, the plan is to pay bills, dividends, and deposits in bitcoin. Using cryptocurrency allows anyone in the world to do anything they want, barring any official trade restrictions between countries. So far, there is nothing preventing a Sweden-Iran trading agreement, thus the road ahead is paved with opportunities for Brave New World Investments.

Header image courtesy of Shutterstock

About JP Buntinx

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.

View all posts by JP Buntinx

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