Iranian President Hassan Rouhani is calling for Muslim nations to create their own financial payments network, including a Muslim cryptocurrency. Rouhani believes this is a solution to Iran’s problems, but it is not.
Iran is going through a hyperinflation crisis, with the Iranian Rial (IRR) losing most of its value relative to the USD. This has led to widespread violent protests in the country, and it got so bad that Iran shutdown the nation’s internet for days while using armed force to slaughter hundreds of protestors.
Rouhani blames this situation on the United States, which has put Iran under heavy economic sanctions. However, Iran is reaping what they sowed, since Iran has continuously threatened to destroy Israel, and refuses to stop building nuclear weapons. If Iran would stop building nuclear weapons the sanctions would end immediately, instead Iran chooses to continue building nuclear weapons, in addition to funding terrorist organizations like Hamas and Hezbollah which regularly attack Israel.
Rouhani believes a cryptocurrency would solve this problem via getting around the sanctions. However, the United States could simply declare such a cryptocurrency to be illegal, which would cripple its ability to be used internationally. Indeed, the United States declared Venezuela’s Petro illegal, since the Petro was an attempt to get around sanctions, and there are no signs that the Petro is being used in the global economy due to this.
In other words, although it is true that cryptocurrency can be used to send decentralized payments worldwide, in Iran’s case it will not make much of a difference if the United States is using their full power to stop it.