Iran might start using Bitcoin to subvert U.S. sanctions

Lately, we’ve been hearing a lot about cryptocurrencies and what Senators and other United States executives think about such assets. While the primary topic has been Facebook’s Libra project, the conversation has bled over into regular cryptocurrencies as well. However, the country may want to get on board with digital assets sooner rather than later, as countries that the United States is holding under sanction are starting to turn to Bitcoin and other cryptocurrencies.

Taking an alternative route

More specifically, Iran might start using Bitcoin to avoid and holds the United States have placed on the country. However, this might make the commanding country prone to stricter regulations regarding the world’s first cryptocurrency.

Of course, it’s the Trump administration that’s putting most of these sanctions in. This is the group that has a big issue with cryptocurrencies in the first place, with the President recently tweeting out about how much he dislikes them. The biggest fear is that decentralized currencies like Bitcoin enable criminals to launder money and that the digital asset isn’t backed by anything. And, as the government views Iran as somewhat of a threat, they would take the country using Bitcoin as a way to subvert its control.

Speaking to Fox News on the matter is one Sigal Mandelker, Treasury’s undersecretary for terrorism and financial intelligence:

“As Iran becomes increasingly isolated and desperate for access to U.S. dollars, it is vital that cryptocurrency exchanges, peer-to-peer exchangers and other providers of digital currency services harden their networks against these illicit schemes.”

However, Mohammad Javad Azari Jahromi, the minister for information and communications technology in Iran, believes otherwise:

“Cybercurrencies are effective in bypassing sanctions when it comes to small transactions, but we do not see any special impact in them as far as mega-transactions are concerned. We cannot use them to go around international monetary mechanisms.”

Whether or not Bitcoin will be used for simply online trading or more particular reasons is yet to be seen.