Iranian Banker Advocates for Cryptocurrency Recognition
...and the design of a domestic cryptocurrency
The Deputy for Information Technology and Communications for Bank Melli Iran, Masoud Khatouni has called for the adoption of digital currencies as well as the design of a domestic cryptocurrency. He said
Iran must formally recognize activities using digital currencies, as they are currently shaping the future of banking. Banks themselves must also enter this field to use them
Khatouni believes that there’s a lot to gain from the adoption of digital currencies, especially considering that the country has had a long history of economic sanctions. He proceeded to note that there shouldn’t be any restrictions or limitations on the potential of digital currencies.
He further noted,
I ask central bank officials to refrain from creating restrictions for digital currencies by way of laws and regulations, because based on the current realities of the world, they have taken form and the Iranian people have also moved toward them,
Scepticism About Cryptocurrencies
Although the bank official went in favor of digital currencies, it’s important to note that not every prominent banker in the country feels the same way. In the past, Valiollah Seifand and Nasser Hakim, the Governor of the Central Bank of Iran and the Head of Innovative Technologies Department, have urged citizens to be cautious when dealing with digital currencies, particularly Bitcoin.
In December, 2017, Mohammad Peza Pour-Ebrahimi, a member of parliament, reportedly stated that cryptocurrencies such as Bitcoin were not in line with their religious beliefs, asking people to take caution when dealing with them.
Deals and transactions made through Bitcoin are in no way in accordance with Islamic and economic fundamentals, therefore related entities, especially the central bank, must exert the necessary supervision over these deals,
The Longer it Takes, the Worse the Damage
Khatouni, however, believes that “the more time it takes for digital currencies to formally enter the country, the more damage they will inflict.” He claims that cryptocurrencies are slowly and silently entering banks, but most of them remain oblivious to the situation.
Even with warnings from regulators in Iran, data shows that trading of digital currencies in the country has risen.
Many people inside the country are currently engaged in buying and selling digital currencies such as Bitcoin
, noted Khatouni.
We must not let things continue, which will force them to deal in it secretly and for that we need to devise comprehensive, precise and transparent rules and regulations for the use of digital currencies.
Image Credit: Deposit Photos
What are your thoughts about the bank official’s statement regarding digital currencies, despite the central bank’s warning? Do you think they are giving off mixed messages? Let us know what you think?