Iran’s national currency rial crashed hard in the aftermath of Trump cutting off the Nuclear deal that has led to hyperinflation and an economic crisis in the country. Experts claim it will turn panicked Iranians to crypto which has already started happening as evident from the siphoning of $2.5 billion in crypto from the country.
Rial crashes hard, Bitcoin becomes an attractive option
At the beginning of this month, the US president Donald Trump cut down the nuclear deal with Iran that has the national currency of the country, rial going down hard. Though rial was already in the dump, long before Trump’s entry in 2016 at $0.0000335 which means $1 USD equals to 29,851 rials.
However, after the deal was cut down, rial went straight down to 0.0000238 i.e. 42,017 which has been estimated to be 50,000 in the black market. This has given rise to panic among the citizens and hyperinflation in the country.
Now, the crisis in Iran is leading its citizens to the cryptocurrency market. As a shield against hyperinflation, Iranians are turning to bitcoin which is serving a great store of value in this deteriorating state.
It has been reported at the beginning of this month that Iranians are already turning to Bitcoin among other cryptocurrencies as according to the chairman of Iran’s economic commission, Mohammad Reza Pourebrahimi about $2.5 billion has been siphoned out of the country in cryptocurrency.
The government in itself is also reportedly planning their own digital currency despite its central bank banning crypto trading in the country in April.
Expert claims Iranians will now shift towards cryptos
According to the Weiss Cryptocurrency Rating analyst, Juan Villaverde, the current economic crisis of Iran will drive Iranians to buy more cryptos, as posted by him:
“Millions of Iranians are panicking. They fear not only renewed sanctions but also economic collapse and financial repression. Many more are scrambling to find a safe refuge for the little money they have left.”
He says in the wake of any such crisis, one can expect the same to happen, in even bigger amounts. During these disasters, people are forced to rely on cryptos for stability as no government or central bank can touch this money which is present in a distributed ledger globally.
Villaverde further wrote:
“To continually trust traditional money and banking, you must live in a country that has continually enjoyed financial stability. But there aren’t many of those left. For the rest of the world, the appeal of cryptocurrencies is immediately apparent: Your government won’t print this currency into oblivion. You can trade it with whomever you want. And you can enjoy a kind of financial freedom that would otherwise be impossible.”
Do you think the move towards cryptocurrencies will help Iranians? Will situations like these ultimately lead the widespread adoption of bitcoin and other cryptocurrencies? Share your thoughts with us!
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.